Hi George,
My replies are as follow:
Does the blur occur suddenly, or gradually? If it is suddenly I would suspect you have placed an FX on the track or project level. Although it could also be an FX that has been animated, but I would think you would have remembered doing that. (Darren’s reply: The blur occurred gradually when it starts to fade off to the next photo; I use the “Cut-to-overlap conversion (seconds)” option for all my photos. In addition, I didn’t use any FX but just the overlap of pictures. )
I would go to Preferences > Video tab and change ‘GPU acceleration of video processing’ to ‘Off’ and try another render, either full or as Paul suggest just a region past the 30 minute point. (Darren’s reply: I can’t find the “GPU acceleration of video processing” under the Preferences > Video tab. I’m using Sony Vegas Pro 9.0, and where to find it?)
Although probably not, it could be a heat issue. (Darren’s reply: I hope not, maybe I’ll open up the PC casing just in case; I did try to observe the GPU utilisation in the task manager, and I don’t see any high usage via the graph).
Are your stills jpg, png, or tiff? Just curious it shouldn’t make any difference. (Darren’s reply: jpg)
Also can you post here screenshots of your Project Properties and Render Format Template settings.
Project Properties:

General Preferences:

Editing Preferences:

Render As Video Settings:

Render As Project Settings:

Darren