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To create a blurred reflection apply a blur to the reflection plane but *after* the Reflector plug-in. This will blur the reflection, but it will also blur the plane itself.
To overcome the blurred plane problem, duplicate the reflection plane. Then use the Show Reflection Only option for one plane and delete the Reflector plug-in from the duplicate. You'll also need to move the duplicate a tiny bit away from the reflective plane otherwise the two planes will be in exactly the same space and AE might render the reflection behind the duplicate.