When setting Blur tot "users without, Guest, & Free memberships, it makes our paid memberships avatars blur when they are unchecked, and I have checked the 3 above the paid membershiip.
bow if user have assigned to one group which isn't selected to blur avatars, then plugin don't blur avatars (http://projects.artmedia.biz.pl/view.php?id=193)
if you selected users without avatars, then plugin apply this to all user groups