You want a slow shutter speed so that moving objects blur. You'll also want the camera on a tripod or other stable support so that camera motion doesn't blur everything (unless you want that effect as well).
Set the mode dial to A and select the smallest aperture (largest f/number). See page 41 of this manual:
http://www.general-imaging.com/uploadedFiles/40_Support/User_Manuals/X500/GE_X500_UM_Eng.pdf. Also, make sure the ISO is not on AUTO. A lower ISO will give you slower shutter speeds. See page 27. And turn off the flash (page 20).
Unfortunately the camera doesn't have much of an aperture range, less than two stops, so you may not be able to slow the shutter as much as you would be able to with a more sophisticated camera.
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