Motion Effect in Still Images

I tried looking through memories, but can't seem to find anything like this. Basically, I want to create a motion effect in a still image - just like when you take a photograph of someone in motion.

This is just a quick example of what I mean and what I tried to do.




What I did was to create several layers and positioned them slightly offset from the previous image. I then lowered the opacity between each layer. Finally, I then used the smudge tool to 'blend' the layers together. However, as you can see, this is slightly cumbersome and you can still see the individual layers.

Is there a proper way of doing this / or a much easier way? If I wanted to create a smoother image, I'd have to create a lot of layers.

Help? I use PS CS2

EDIT: what I want is the blur motion to appear behind a clear still image - does that make sense?