Aero Plain is a theme for Windows 7 created by Conscars at deviantART that makes your taskbar invisible. The blur effect will still be there but maximum of the stuff will be transparent.
How to install:
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Download Windows Theme Installer.
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Download the theme. (Link given below)
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Run Windows Theme Installer and browse for the theme.
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Click on Install Theme.
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When it asks to apply the theme, click Yes.
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Right-click on your Desktop and select Personalize.
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Click on Windows Color.
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Select the color that matches best to your wallpaper. For example, if you wallpaper is in green color then select the green color. Now your taskbar will be almost transparent.