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Trapcode Shine or if you have a Matrox RT.X2, Matrox Shine. Matrox even has a nifty little preset in their Blur/Soft Focus effect called "Focus Blowout". I used it a lot on this video:
... of course you would need an RT.X2 for that...
Sapphire!!! This one does it all.
Set the two clips but to but.
Put Fast Blur and Levels effect on the first clip.
About 10 frames from the end put a keyframe for bluriness in Fast Blur and (RGB) white input level in Levels.
About 5 frames from the end set a keyframe for Gamma and set it to 50
On the last frame set a keyframe for Fast Blur Bluriness to 20 and Levels (RGB) White Input Level to 0.
Do the same for the second clip but in reverse order.
On the 1st frame Bluriness on 20 and White Input Level to 0.
5th frame Gamma set to 50
On the 10th frame Bluriness at 0, White Input Level to 255 and Gamma to 100.
You can make the transitions fast by putting the keyframes closer together.