Blurring highlights

I just watched this tips for Color Grading in Adobe Premiere where someona was talking about blurring blown highlights (on 13 minutes):
https://vimeo.com/29256397
I am wondering who to do such effect in Sony Vegas.
What he does in Premiere is keying out highlights, using gaussian blur on it and then using screen mode for better blending.

Nice plugin, but what does it have to do with blurring blown out highlights?

This plugin is just for adjusting exposure. Yes, there is highlights slider, but I would like to try to blur highlights because I like this look. But maybe I am missing something...