What do the “motion” and “static” quality refer to?
Whether the QuickTime VR rendering engine spends more time anti-aliasing the image as it is panned. The defaults (Motion 75%, Static 100%) mean that while you are panning the movie, the image is not anti-aliased (ie, left as lower quality), while when stopped it is. The other main choice is max quality (Motion 100%, Static 100%) which will present a better image while panning at the expense of speed on a slow machine. The compromise is up to you. There is no practial benefit to using anything lower than either of these two settings.