The analysis of motion in image sequences represents a popular and constantly growing research field. In this paper a motion analysis scheme is proposed to function as an assistive vision technology tool. The first stage of this methodology includes a video stabilization scheme as a pre-processing stage. In the next stage a non-linear spatio-temporal diffusion approach is applied and a kernel based density estimation method follows to assess the motion activity. This overall process is completed by watershed-based segmentation to detect the moving areas. The presented experimental results indicate the efficiency of this scheme in detecting and segmenting the moving areas.