Rich, I am going to dissagree with you a bit here. But then again I am in the same debate myself, 80-200 nikon no VR or 70-200 nikon VR lens. Somehow I keep thinking about the jump in price and it scares me. But regurding blur with your wake images Rich is correct and that your shutter speed should be equivalent if not faster to your focal length of your lense to prevent arm shake. If your shooting 200mm then it would be 1/250, 300mm 1/320, etc.
Now, you can get away with slower shutters with a VR or IS lens but you aren't going to be able to stop the action of your subject. The slowest shutter you can usually use to stop action would be 1/250, thus, making the VR or IS obsolete when shooting any kind of sports since the slowest you could shoot would be 1/250 anyway.
Now, I am not saying that the VR or IS aren't great lenses. I have used them for shooting concerts and have gotten AMAZING results at shutters as slow as 1/15. I was just lucky to catch the moment in time when my subject wasn't moving fast. (see attached photos)
As far as your photo goes it looks like you were definitely dealing with a situation where you lost a lot of light fast. I also notice that your focus seems to be a tad off (see photo) which resulted in your subject being a bit more blurry. A few suggestions I would give would be to bump up your ISO as you loose light in order to keep your shutter faster than 1/250 (the faster you can get the better!) And if you find yourself in a situation where you just cannot get that fast then maybe try panning with the subject in order to keep your subject still.
Hopefully that helps! Now I gotta figure out which lens I want to get!