That's Heisenberg's Uncertainty Principle. It set a lower limit to how accurate u can measure the position and velocity of a particle. The more accurate u measure one, the less accurate u can measure the other. There is logically no equipment that can do any better than the limit no matter how technology improves.
To observe, you would need to bounce light off the particle. Since the particles are so freaking small, by shining light on it could significantly bumb it out of its initial position and velocity. with this fact, Heisenberg derived the following limit, dxdp>=h.
The interpretation of QM is very counter intuitive. What u mentioned, "So wouldn't it still be governed by certain rules and behave in a predictable manner? " is the Bohm interpretation, where he favours underlying mechanisms, which only its probabilities are observable as opposed to definite values. Bohm interpretation still favours "determinism".
The philosophical argument here is, since u cannot observe position and velocity to an accuracy of higher than dxdp>=h, is it meaningful to talk about their existence? When a tree falls and nobody's there to hear it, would it make a noise?
There is no way to describe the quantum realm perfectly with English. You can remove the picture completely by applying Q-algebra and all u get are numbers. Or u can give incomplete but helpful physical pictures to help someone grasp the logical concepts. I've discovered in my works, even if u r real good, when u talk in pure mathematical terms, u can lost yourself.