I tried to blur it some more, but it didn't look right at all. Tried motion as well, still no good. I'm tring to figure out version 8 on my machine now....so, you never know what might come.
that's the only way to learn. point and click til your fingers blister and fall off. Also, try out Photoshop Junkie . They have great tutorials, and even though you have PSP, you can still use most of their tuts and just find the equivilent in your program.