Vibration Reduction, more commonly know as VR, can minimise blur through image stabilisation technology.
Using a VR Nikkor lens can enable you to capture sharp images in low light or windy conditions, if you are being blown around by the wind, thanks to VR technology. It also allows you to use the camera at up to four stops slower then usual with a VR lens and still achieve good photos.
Vibration Reduction in Nikon technology is found in the lens, not the image sensor. This allows algorythms that are specific to an individual lens to be applied, allowing VR to be customised to that lens. This also allows the user to control composition of the image more easily when the shutter release button is pressed half way, as a separate algorithm confirms the stabilisation effect in camera.
The system is also sophisticated enough to recognise the use of a tripod in some lenses, and even recognise panning, where you don't want the lens to compensate for movement. It can also reduce shake caused by travelling and shooting in a moving vehicle.
Nikon VR lenses use two angular velocity sensors, one for horizontal movement (yaw) and one for vertical movement (pitch). Diagonal motion is then tackled by both sensors working together. Data is then sent to a microcomputer, which then tells the lens how much compensation is needed. voice coil monitors then move selected lens elements to compensate for the motion.