Great start! Scaly Horde is my favourite as well. I have a plog on here somewhere with my stuff, and its also on my blog...
I love that Kraken model. I picked up one a while back, and now they have it for $15 with the new KS. Oh well, at least the resin one will be nice and crisp. I am also suspect to how those long tentacles will take to the bones medium.
Where did you get the clear rod for your kraken? It is quite nice and big. I could see myself trying the same thing, though I would do something slightly different with the base. Think the model will be stable enough once you add the tentacles? You could always add some rocks to add weight to the base.