This blur effect looks really awesome, though by looking at the color count I am guess you didn't do it pixel by pixel, and likely to get rejected for display here.
If you are really wanting to show the piece here, I would suggest using the current image as a template to go back and blur it by hand, and thereby reducing the color count to a manageable level.
Machine blurring = unacceptable
What a way to waste a perfectly good sprite.