There are workarounds to the smudging issue with the ffmpeg source type.
The simplest thing to do is to make sure the Remote Method is set to "RTP/RTSP" which forces the stream to TCP.
You should try that first.
Read about other things to try here:
https://github.com/ZoneMinder/ZoneMinder/issues/811
If that does not work then your second choice is the libvlc source type.
It is unlikely we are going to get the Remote source type working as well as ffmpeg or libvlc. It it doesn't work, then you should try a different source type. We just don't have the manpower or variety of cameras to spend time maintaining it. Feel free to submit pull requests.
Also note that you are running Ubuntu 14.04, which has native support for libav instead of ffmpeg. Despite claims from the libav developers, we know from experience that it is inferior to ffmpeg. Trying to add ffmpeg to Ubuntu 14.04 is problematic because you either end up with both libav and ffmepg on your system at once (which causes problems) or you try to rip out libav which causes dependency problems with other packages. The short and skinny is that, you will make things easier on yourself if you upgrade to a newer version of Ubuntu. All versions newer than 14.04 changed their native support back to ffmpeg (thank God).
