Please use this thread instead for any further questions, feedback and requests to have the features added to for cropping ability which so far no one seems interested so have not bothered to add it. Seems to work fine on my cameras with the time ticking over, but for tree movement cropping is a must have IMHO.
Readme has full example for a http only camera and you are using the wrong channel for turning the motion on and off. Cameras with APIs will probably get the control added at some stage so you can use the built in motion control of the camera or use the ffmpeg one on demand. There is also a newish channel for hooking in an external PIR sensor.
https://github.com/Skinah/IpCamera#full-example
Dimmer HttpOnlyMotionControl "Motion Threshold [%d]" { channel="ipcamera:HTTPONLY:TestCam:controlMotionAlarm" }
Switch HttpOnlyMotionAlarm "Motion detected" { channel="ipcamera:HTTPONLY:TestCam:motionAlarm" }