Since its a week before Christmas and I'm feeling ill, I decided to look through some old stuff. I've seen pixelated videos before. When videotapes and copying of videos was being done. This looks like a 2nd or 3rd generation copy (a copy of a copy of a copy) of a video. Enhancers were made to keep the copy from degrading. The pixelation was prevalent in moving objects more than static objects.
That's my story and I'm sticking with it.