Okay now I am in the render palette, messing around with the depth cue.
No luck in making things fuzzy/out of focus.
You say you added a depth 'alpha'? I see it, but I'm not sure how to make it work right. I've been trying for a while now with not even a LITTLE blurring in any areas. I've tried all sorts of the default textures, I've imported different default alphas into the textures and tried them, nothing is working for me. I've varied the Depth1 and Depth2, I've tried changing the sliders of intensity and softness, nothing is working