Hi
The censor is a separate effect not associated with Blur. It should be in the Filter section of the effects list window... to the right of Blur...

If you don't see it and are using VP 8.45 you may have inherited a "version" of 8.45 that isn't showing this effect.(There are various flavours of the installation some with and some without various features.) If this is the case then re-run the vpsetup.exe file (No need to uninstall) and then check the version to see if that effect is now present. If it isn't try again. I'm not saying this will work but it might.
Once you get it (cross fingers) use it like the zoom effect...outline the area to blur (as Borate shows)
Nat