The third person controller is basically done. The animation controller is WIP but it already looks fairly decent. It can be fine-tuned by introducing some secondary movement (e.g. move the ears and tail depending on acceleration, or bend the back when leaning into a corner) or by adding some IK for some finer control.
If you are interested in seeing more about the kangaroo, you can find a video with all of the animation loops on our forums: http://iceweasel.forumatic.com/viewtopic.php?f=14&t=22
I also talk a bit about how the character was rigged.
Next up I'll be working on swimming. Our game is a little bit more complicated due to the whole local gravity feature, so the method I will use for water is to define water mesh volumes. Swimming mode will be activated when you enter the volume and deactivated when you exit the volume.
I have created a simple "pond" model with which I will be testing this feature: