"Blinking or moving your head triggered a larger reaction than any thought impulse."
No surprise there, the muscles of the head will have a stronger signal than the brain, if you're using electrodes outside the skull.
There might be some way of filtering those out, perhaps using additional electrodes directly on the relevant muscles. Subtract the signal on those electrodes from the signal on the other electrodes.
Also, based on the geometry of the xwave headset it looks like the electrode(s) are very rostral, so I would imagine that it picks up a lot of EOG from the eyes and EMG from the frontalis and corrugator supercilii (eyebrow muscles).
The ground, again from what I can tell from the photo, is on the earlobe. This is not a terrible place for a ground (there are no muscles there) but it's not ideal for removing EMG artifacts.
No surprise there, the muscles of the head will have a stronger signal than the brain, if you're using electrodes outside the skull.
There might be some way of filtering those out, perhaps using additional electrodes directly on the relevant muscles. Subtract the signal on those electrodes from the signal on the other electrodes.