Depends on the exact effect you want to achieve. In the example, the camera was probably handheld and the movement (can see esp in the lights bottom left) was probably the photographer keeping the subject in frame.
If you want, you can lock the camera position and shoot slow, which will mean no motion effect/streaking of the background objects. Personally I think it's better with the camera movement -- more dynamic.
so essentially i have to set the shutter as a slow speed and pan my camera to follow the subject to achieve the motion feel and also to use flash and set it to rear-sync so that i can freeze the subject. That right?
Yep 1/10s external flash on a flash cord in one hand and the camera panning in the other hand, rear sync and about 10 beers or so. Good night all I can say is take your camera out drinkng with you can shoot turn something new each time. I always leave the exif data.
Taken on April 15, 2011 at 10.29pm PDT (edit)
Posted to Flickr April 19, 2011 at 5.30PM PDT (edit)
Camera Nikon D300
Exposure 0.1 sec (1/10)
Focal Length 17 mm
ISO Speed 200
Exposure Bias 0 EV