yes!! ok, so you did that with the layers and blur?
Yeah. I have CS4, but I'm guessing PSE can do this as well. Open your pic, Ctrl J to create duplicate layer, under filter tab select Gaussian Blur. When the box opens, adjust the Radius with the slider. I use anywhere from 4-16, depends on the pic. For this one, 9 worked pretty well, but like I said, quick edit and it's a small file. Apply filter, then kick down the opacity. This is done by eye, I usually go anywhere from 40%-60%, depends where it looks best. Sharpening beforehand may sound counter-intuitive, but it will preserve the details when you add the blur layer. An unsharpened pic with blur layer just looks like, well, a blurry pic.