Adobe Photoshop PS5 & Filter Forge
After reading in the forum about distortion/blur I tried out the Iterated Distortion via Average filter and found it a most wonderful filter to use. It has 'dreamy and floaty' and at the same time dynamic characteristics. I was aiming for a 'heavenly scene' using a frosted window from Free wallpapers as source, combined with 3 other images. 2x of the amazing Janice Martin, the world's only acrobatic aerial violinist and another aerial acrobat.
The filter can be downloaded from the forum directly, but I cannot add it in the section 'Enter a filter name, URL or author', as it states there is no such filter. Closest filter to it is Noisy Blur by CeleriedAway.