Cooperating means working with someone in the sense of enabling: making them more able to do something (typically by providing information or resources they wouldn't otherwise have).
Collaborating means actually working alongside someone (from Latin laborare: to work) to achieve something.
The confusion comes from the overloaded meaning of "work with": In the "Work with me, people" sense, it means to go along with my idea - it's a passive condoning or suspension of disbelief rather than an active involvement. In the "I'm stuck, can you work with me on this problem?" sense it is a request for active commitment.
So in terms of helping achieve something, the ordering is something like collaboration, then cooperation, then passive indifference, then active obstruction.
Blurry can always be replaced by blurred (except in the word blurry-eyed), but not always vice versa. IMO, blurry, for the most part, fits all three meanings of blurred in the OALD excerpt, not just the first.
However, blurred has another use which blurry doesn't duplicate, and the dictionary doesn't bring out (probably because it's hard to do without examples). When blurred follows is, was, etc., (i.e. the picture was blurred), it can take a modifier or modifier phrase (e.g. the picture was blurred by the rain or the picture was badly blurred). Blurry cannot be used nearly as extensively in this way.
To go into nuances, even in the places where blurry and blurred are interchangeable, blurred suggests a previous state of non-blurriness and may suggest a perpetrator, whereas blurry only reports the state of the object and doesn't connote much more. The distinction is, however, only slightly observed in common usage.
Best Answer
The New Oxford American Dictionary has the following note.