[Scott] “(collapsing is necessary for whatever reason, esp rendering time).”
Collapsing is only neccesary if it helps in speeding up rendering WITHOUT affecting your brain cells – obviously that would be difficult to put into any manual.
Collapsing Transformation results in a re-wiring of AE’s Render Pipeline. instead of the usual Mask, Effects, Transform sequence; AE goes into a Transform, Mask, Effects rendering order.
[Scott] “why does this happen? and how can i fix this problem so that i can apply a 2px or 5px blur or whatever, and still collapse my comp?”
The moral of the story is NOT to Collapse Transform to speed up rendering. Only use Collapse Transformation to enable a feature/function not otherwise available without Collapse Transformation. There are other bits of information missing from your post that will allow me to provide a snapshot, one click answer.
I suggest that you re-think the use of the Collapse Transformation switch. The way I have read your post, it looks like things will work out if you do not Collapse Transformation.
HTH
Roland Kahlenberg
broadcastGEMs
customizable animated backdrops with Adobe After Effects project files