To be honest, I was amazed at the numbers too; I forgot to mention it in the post, but a pokemon was appearing every 2-3 minutes. It was pretty awesome.

Yes, incense does work a lot better if you use it while moving! I've tried it while staying still, but it just doesn't have much of an effect. Walking, or using a vehicle which moves at speeds that don't register as a car, like a bike or a boat, works MUCH better.