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Morgan has correctly listed most of the challenges in creating the anemone. One minor point is the use of a travelling matte. I'd love to be able to do this, but alpha channels are not available in MPEG4 (or JPEG or anything else with "PEG" in the name). Looping the video sequence is one of the hardest parts, since the tentacles are just going everywhere, and don't conveniently all return to their starting positions at the same time.
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