Does this version of Vegas allow you to isolate and blur an object" Like perhaps a picture in the background?

Yes it does, no problem.

You can certainly use the "cookie cutter" to do this. If you want to make it even simpler, you can use a third party effect such as Pixelator found in NewBlue Video Essentials.

In the pro version there was a tool that allowed you to make an outline around whatever it is that you wanted to blur out. I did'nt notice this in the trail version of platinum. Also did Platium 11 just come out? The trail version that I down loaded has expired, but I thought it was platinum 10? I want to purchase this program this week so im just trying to make sure that I understand correctly when it comes to bluring out an object in the background.

Pro has the masking tool in Pan/Crop. That has never been in the Movie Studio versions.

Ed:

So even without the masking tool, Platinum will allow me to blur an object in the background? Keep in mind that i'm not talking about bluring a whole image just a pciture of face in the background.

Yes it will - using the Cooke Cutter. It will take two tracks, though. The cookie cutter will be used to "cut a hole" in the top track allowing the bottom track to show through. Blur the copy showing in the hole and you're done.

I explain how to do this in my newsletters (http://www.jetdv.com/vegas/forum/viewtopic.php?t=20")