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No, it is not caused by settings. Probably CCD sensor is bad. !!! Check if there is possibility of free of charge repair !!! Many models are repaired free with CCD broken, even warranty time is passed.
Sounds like ccd issue. Some people have reported similar problems when cam is exposed to water (moisture) or if it's been dropped. Contact you local Casio service and ask them details. They probably just say that send the cam to repair but that is expensive, at least in here Europe.
It appears this problem is due a failing CCD device in many brand cameras. All the manufactures use the same source(s). I have not persued Casio as yet, but other companies are offering a recall to replace the CCD for free. I plan to use this approach with Casio. Search the web for "failing CCD in digital camera", it describes exactly what we are observing.
If the camera even got a little bit wet I would recommend that you send it in and have Casio take a look at it. Water, sand and even the slightest drop damages these cameras like you wouldn't believe. Call the repairs center at 800-706-2534 and then keep choosing option 1.
Do the pictures have lines across them as well as being blurry?
If you see the lines then your shutter is stuck open and it will require repair. The shutter has to close for the image sensor to properly record the image.
If they have no abnormal lines on them, are they "out of focus" blurry or is it more of a streaked motion blur kind of thing?
If you do need to get the camera repaired you should check with your manufacturer for any recalls or technical bulletins, and see if they will service your camera under warranty. If not there are a number of repair facilitys available on the internet who generally have better rates than out-of-warranty service at the factory.
Advance Camera Repair