Want to make a "coming into focus" navigation

Hi Sitepointers!

I have an idea for a rollover animation that is basically this:

then on rollover, this:

I’m thinking either two .jpgs – the opacity of the blurry one on top reduces on rollover seemingly coming into focus OR css3 transition where two semi-transparent .pngs actually move to come into focus!

Any ideas about plugins, code, etc to accomplish this?

An extreme version of blurring text on hover with CSS3 can be found at: