Glad to hear everything is working.
In the demo slide show we are using a regular background image for the first slide, a blurred copy of the same image for the second slide and the added graphics are called “layer graphics” with the added slide show animations integrated into the slide show. The effect of the background image “blurring” is just the result of a fade transition being used from slide 1 to slide 2, giving the impression of the image blurring as you watch.
For details on using the plugin you can visit the help documents and watch the videos. We include links for these inside the help document that comes with the theme.
Here’s the first video demo for making a new slide. You can also view the example slide shows that come with the theme and should have installed automatically.
http://www.themepunch.com/codecanyon/revolution_wp/liveguide/02.video.html
If you could please for future requests start a new topic for each individual issue or question. We find that separating each question into a separate topic keeps the information much clearer and easier to follow. It also aids other users in finding answers to the same questions. Thanks!