Ferrofluids are colloidal suspensions of nanometer-sized ferromagnetic particles which are uniquely suited to various applications in Lab-On-Chip, or micro-total analysis systems, due to their good sealing properties and ability to be actuated without the use of moving parts. In particular, applications for droplet-based ferrofluids include pumping, valving, optofluidic switching and digital microfluidics. In particular, characterization of the nonlinear behavior of ferrofluid droplets during high-speed movement is crucial for understanding the optimization and performance limitations of LOC devices and is helpful for the fundamental understanding of multiphase ferrofluid systems. Here, the movement regimes of ferrofluid plugs, droplets contacting sides of a microfluidic channel, is experimentally studied for a large range of volumes and movement speeds. A unique imaging setup using a circular cross-sectional glass capillary and reconfigurable microscope mated with high-speed CCD camera enables observation of the plug from from multiple angles. The dynamic movement regimes that were observed include: deformation, partial detachment from the top of the channel, complete detachment and break-up.