IC 348 is a star-forming region in the constellation Perseus. At magnitude 7.3 it is not visible to the naked eye.
The blue cloudish stuff is reflection nebula. Reflection nebula are usually blue because the scattering is more efficient for blue light than red (this is the same scattering process that gives us blue skies and red sunsets).
North (toward Polaris) is up in the photo. The picture was taken with a fully modified Canon Rebel camera (this is my one shot color camera) on a TEC 140 telescope in the Alpenglow-Torrey House Observatory in the dark sky community of Torrey, Utah (Bortle 2-3).
Six 240-second sub-frames were used and stacked in Deep Sky Stacker = 24 minute photo. Unguided, unbinned, no darks or flats. Processed in Photoshop (CS5).
Location in the night sky of the photo: