Just had a mommentary play and my immediate thoughts to your two problems:
1) Smearing
This is the cathode ray tube on your monitor. You are displaying an area of extreme contrast and moving it, the tube takes time to react - the spead of reaction (and therefor the amout of smearing) will depend on the quality of your CRT (monitor).
2) Ball Sticking
The ball is colliding, then it is colliding again, then again and then again.
Either reposition the ball after a collision so that it cannot redetect the collision, or use a variable to hold which bat was hit last and check against it every collision to ensure the same bat doesn't perform two hits in a row.
Pneumatic Dryll
