Ok, not blurring, but masking revealed. Using the technique I mentioned above, this is an example of what can be done. This took about three hours to do and I'll admit it's not perfect, because it was shot to show once on a backdrop while a the girl sang the song. It didn't have to be spot on and it's not.
Top layer was colour, lower layer b/w. Masked off her head and keyframed it as the camera tracks around her.
10% feathering on the edges and around fifty or sixty keypoints that move.
HERE (7MB wmv)