Here's a good def I found on the internet:
A: Balancing refers to the process of balancing the rotating assembly. A machinist will determine a bob weight based off of the total weight of 1 set of rods, rod bolts, pistons, pins, and rings. Then each rod will be machined as necessary to equalize the bob weights. Then the crank will be spun on a balancing machine with the flywheel/flexplate, and harmonic balancer. Material will be removed or added (mallory heavy metal or welding) to the crankshaft counterweights to achieve a balanced rotating assembly between .5 to 1 gram (in high performance applications). The closer it is to being perfectly balanced the less friction and harmonic losses, giving more power and durability.
Blueprinting refers to machining all critical dimensions and clearances so that they are within spec. Basically machining the engine so that the actual measurements are within spec of the engines "blueprint". Again, this ensures precision, and reduces frictional losses, increasing compression and power output, and increasing durability and longevity. In production engines, there is typically a wide range of acceptable dimension and clearance specifications. A machinist will often tighten up the spcecification spread. Meaning that he will machine it to a higher standard of precision. Alot of times people will say they have a "tight engine", this means their engine is bluprinted to a tighter range of tolerances, with more precise critical dimensions and clearances.