Help with image please!

[KRF]

Hi all, I am using photoshop elements 7 and I am wanting to do this effect as shown in the image with the red arrow pointing at it, it to me look's like it's frosted. with a hole cut out so you can see a clear part of the image. the whole right side where the red line is and the arrow pointing.

How would this be done? thanks for looking and any help you may give.

 

[iDad]

select your area that remains clear, select inverse >Filter>Surface blur 2 or 3 times

 

[blueprint]

...to add on to that, you'd probably want to follow it with a semi-transparent layer of white on top

 

[2pixels]

Use a smart object blur combined with a vector mask; non-destructive and editable at all times.

 

[gohan2091]

2pixels idea is the best way but if you do not know about smart filters, make your selection, go to filter at the top and select "Convert for smart filters", then apply your blur filter and it will make a non-destructive blur layer which you can remove anytime you wish.