Simple or as complicated as you want to make it!
Simple:
Two layers, one with the clear picture, on top of the other with the blurr. One or the other in a movie clip...my guess is the clear one would be smaller in BK size - so put that one in a movie clip.
The thinking here is to play with transparency (alpha) of the clear picture, set to 0%, at the beginning of the mc. You then have the choice of using an invisible button, to have that movie clip play on rollover, and since there would be an alpha tween going up to 100% in the mc, the clear picture would cover up the blurr. A reverse play on a rollout would ensure a soft transition back to the blurr.
The other choice (Wang's favorite!), would be to use an onClipEvent, and do the same kind of alpha manipulation. Probably easier when you get the hang of it.
Complicated:
Your imagination is the limit! The alpha intensity could for instance, be dependent on a central point of the picture... The closer you get to that point, the clearer the picture becomes... Etc... Etc...
You could probably use a filled gradient "mask" and thus clearing only a certain part of the picture, rather than the whole thing when using the above methods!
Regards,