Hello, I have been searching for months for video editing software
that can "block out" faces or objects in a video. For instance, when
watching the tv show Cops, some suspects faces are "blotted" or
"pixelized" out. The 10'oclock news in your local state would be
another great example of faces being blocked to protect peoples
identity. I assume that this is a frame by frame process but i could
be wrong. I have tried Ulead Dvd Movie factory and the program didn't
have the option to do so. I'm pretty sure that these are special
effects so some apps would not include this. To sum it up.... I have a
video (format does not matter Avi, mpg, as i can figure out ways of
converting into the needed format.) that i would like to blot out a
face on.

Thanks alot for your time.... even if the question isn't answered. I
know that this may be a hard question to answer.... I've been
searching Google for a while for it!!

It is very easy to do this in "Adobe After Effects 6.5" (though it's
more of a compositor than video editor).
To blur a face in a video in After Effects, you just:
1) Load the program, create a new project, import the footage
2) put the footage onto the timeline on one track
3) select "duplicate" so it puts it onto the second track too
4) Using the pen, you create a mask (or matte) by clicking 4 times or
so around the face you want to blur in the top layer.
5) select a "blur" effect and tell it how much to blur it.
- and that's it.

The good thing about After Effects is you can easily animate the mask
shape/position (eg. for if the person walks from screen
left to right, you could just create a keyframe on the left, and one
on the right and it would create all the inbetween frames - though
they may need changing a bit).