We are improving the VFX with Cycles engine as of episode 4 of Mrs. E and here is the result. Thanks to Daren Devoux's Merman. I retextured his model in Cycles, with a translucent shader to get a subsurface effect on the skin. I am very proud of the steps forward I have been making and hope to really bring out the best in Blender, myself and the Mrs. E series.
The first episode is out now: http://blip.tv/mysteriousmrse/nevermore-6548692
Though not rendered on Cycles I am sure you can see what improvements we are going to make as the series develops.