In this work, we explore the outage probability (OP) analysis of selective decode and forward (SDF) cooperation protocol employing multiple-input multipleoutput (MIMO) orthogonal space-time block-code (OSTBC) over time varying Rayleigh fading channel conditions with imperfect channel state information (CSI) and mobile nodes. The closed-form expressions of the per-block average OP, probability distribution function (PDF) of sum of independent and identically distributed (i.i.d.) Gamma random variables (RVs), and cumulative distribution function (CDF) are derived and used to investigate the performance of the relaying network. A mathematical framework is developed to derive the optimal source-relay power allocation factors. It is shown that source node mobility affects the per-block average OP performance more significantly than the destination node mobility. Nevertheless, in other node mobility situations, cooperative systems are constrained by an error floor with a higher signal to noise ratio (SNR) regimes. Simulation results show that the equal power allocation is the only possible optimal solution when source to relay link is stronger than the relay to destination link. Also, we allocate almost all the power to the source node when source to relay link is weaker than the relay to destination link. Simulation results also show that OP simulated plots are in close agreement with the OP analytic plots at high SNR regimes.