The Kraken's only sharp weapon is it's beak, you moron.

He said make crabs have deadly claws, not krakens.
And a kraken has no beak. It's basically a gigantic squid.

I'm surprised a person from Japan as yourself doesn't know the most important thing about a squid, and why a giant one is no fun to go up against. They do indeed have a beak. A rather big, sharp, and painful to be crushed/mashed by one. Not only that, but their muscular arms with suction cups will hold you perfectly still while it slowly eats your legs off. A Kraken would be even worse.
Pic, foo

I thought you meant, me?

But Giant Squid are real, and only appear near the surface of the water when ill, they aren't strong enough to rip large, wooden ships in half, quickly, but they clash with the Mighty Sperm Whales.

Octopuses, and Squids eat crabs as snack, so in your face Spider King Crabs ( Biggest Crabs )

The newgrounds version is better. Youtube sucks for flash and the like. Seriously, watch it the way it was meant to be seen, without all the fuzzy compression bull crap.

http://www.newgrounds.com/portal/view/239227

ON TOPIC: This is cool. Airship for the win. Make it a pirate ship with thrusters. Make a Captain skeleton too. With a parrot on his shoulder. An attachable parrot so it can be shot off.

Well yeah, but if you were up against a giant squid it still wouldn't be pretty.
And the Kraken is a mythical creature, so it CAN break a ship in half if it feels like it. It's special.

@All:
No, no Krakens in my mod. No water for it. At least, not yet...

@SnowMonster:
Airboat when I get a sprite for one. Captain tomorrow...

If you use the parrot idea make it so it has a loud squawk for the death noise.

Also use a color other than blue. When you jump around it looks like the legs are floating.

Or outline it in a darker blue.

Color around the shorts: Check.
V0.3 is out, including a special guest star... CAP'N SKELLY! He's just as fragile as the other skellies, though, so keep him safe. He's a brain character. Belaying pin added too.
Cap'n has a black hat variant, just change the .bmp in the skeletons.ini from CapnHat2.bmp to CapnHat.bmp.
Sorry, no parrot yet. Couldn't find any squawk sounds yet.

Yeah, I just came back from vacation in japan.
Now to change location text.

Wtf is a belaying pin?

BELAY THAT QUESTION!

It's a pin that holds down the rigging lines, pull it out and you have to painstakingly, tie it back down.

What does it do in CC, though?

It's a heavy blunt object. It's usage should be quite obvious after that.

Not much content, but pretty nice so far. Lets see if youre actually gonna make something serious out of this. If not, its a good theme/joke mod.