The new 8.4m LBT adaptive secondary AO system, with its novel pyramid wavefront sensor, was used to produce very high Strehl (75% at 2.16 microns) near infrared narrowband (Br gamma: 2.16 microns and [FeII]: 1.64 microns) images of 47 young (~1 Myr) Orion Trapezium theta1 Ori cluster members. The inner ~41x53 of the cluster was imaged at spatial resolutions of ~0.050 (at 1.64 microns). A combination of high spatial resolution and high S/N yielded relative binary positions to ~0.5 mas accuracies. Including previous speckle data, we analyse a 15 year baseline of high-resolution observations of this cluster. We are now sensitive to relative proper motions of just ~0.3 mas/yr (0.6 km/s at 450 pc) this is a ~7x improvement in orbital velocity accuracy compared to previous efforts. We now detect clear orbital motions in the theta1 Ori B2/B3 system of 4.9+/-0.3 km/s and 7.2+/-0.8 km/s in the theta1 Ori A1/A2 system (with correlations of PA vs. time at >99% confidence). All five members of the theta1 Ori B system appear likely as a gravitationally bound mini-cluster. The very lowest mass member of the theta1 Ori B system (B4; mass ~0.2 Msun) has, for the first time, a clearly detected motion (at 4.3+/-2.0 km/s; correlation=99.7%) w.r.t B1. However, B4 is most likely in an long-term unstable (non-hierarchical) orbit and may soon be ejected from this mini-cluster. This ejection process could play a major role in the formation of low mass stars and brown dwarfs.