1. A method of compensating for perceived blur due to motion between a current frame and a previous frame of a digital video sequence using estimates of motion direction and motion extent of pixels between the frames, the method comprising: generating an initial guess frame based on the current frame; blurring pixels in the guess frame as a function of their respective estimated blur directions and blur extents; comparing each blurred pixel with a respective pixel in the current frame to generate an error pixel for each respective pixel; blurring and weighting each error pixel; and combining each error pixel and its respective pixel in the initial guess frame thereby to update the guess frame and compensate for blur.