Hi Cheng Lim Sek,
Yes, it is possible to blur the items that are not selected. However, this feature is not out of the box, and is necessary to implement it, you just have to apply the blurring effect to all items that are different from the SelectedItem. You can easily achieve this by creating a user control and a visual state for the blurring effect, we have an example that demonstrates how to create a user control and a visual state and apply it in the selected item of the CoverFlow control in our FirstLook CoverFlow
Moreover, we also have an example for our CoverFlow control that demonstrates a DataBinding model. You can also check the Data Binding CoverFlow for Silverlight
article by Valeri Hristov. It also contains a sample project that you can find quite handy.
I hope these resources will help you achieve your goals, if you cannot make use of them or have questions about something, do not hesitate to contact us again.
the Telerik team