I viewed the initial source file (changing the file suffix from ZIP to MTS) using the VLC player on a core 2 duo. The flying seagulls look pixelated or jaggy prior to any editing at all. Perhaps others can test, using different PC specs or players.
What bitrate, frame rate, or pixel dimensions did you use when "shooting" the birds? Interlaced or progressive?
If you persuade the birds to return for another "take," test whether you get any better results with your videocam's HQ setting. Also try using lower pixel dimensions, but with higher settings for bitrate and framerate. For instance, the 1280x720 60p mode of the Lumix GH1 is better for fast action than the supposedly HQ 1920x1080 24p setting. Bread crumbs will also help, but gulls can sometimes be lured by other means.