Yeah, I think that we're going to house rule that they have swim and Ironskin... they're too weak otherwise.

And I like the idea that the tentacles would get dragged along with the Kraken if it is forced to move... it just makes sense to me.

Attempted our first Kraken encounter and I have to agree with the sentiments expressed by Kartigan. As it currently stands as far as the rules that are available for guidance, it's not a whole lot of fun to play. As Thundercles pointed out and as was reiterated at the Realms of Terrinoth event, Kevin Wilson welcomes players to just come up with whatever works for them. (I still hope to see this covered soon in a FAQ.) In the meantime, I took Kartigan's questions and expanded on them. This is a rough draft of house rules that I put together. With these, or some reasonable facsimile..at least it becomes possible to make use of the Kraken, even if it isn't perfect (or even pretty). I would be interested in people's thoughts. Thanks in advance.

Kraken Rules :
How does the movement of the host and the tentacles interact ? First, the host does its action (run, advance, battle, ready) and does its normal movement. The tentacles move with the host at this time, as if they were retracted into the body of the host. At the conclusion of the host's movement, array the tentacles around the host body (sounds vaguely religious..). When this step is completed, the tentacles do their individual movement and/or attack. The host must maintain a static position while a tentacle has a hero grappled. If the host moves during this time, the victim is released (ungrappled).
Do tentacles gain the abilities of their controlling figure ? No. As for Swim, it isn’t necessary as the tentacles move with the controlling figure on its initial movement, and do not move on their own until the secondary (attacking) move.
What happens when the controlling figure moves further than 3 spaces away from its tentacles ? When the host moves, the tentacles give up their position and become one with the host again (see rule #1).
Are figures that are immune to Grapple immune to being "Grappled" by the tentacles ? Yes.
Can threat be spent to cause the tentacles to move more than 1 space per turn when dragging a hero ? Yes.
Do tentacles block Line of Sight and prevent enemy figures from moving through them (basically, are tentacles "figures" themselves) ? No.
Can a figure being grappled by a tentacle attack said tentacle ? No.
I f a hero attacks a tentacle grappling another hero does the attack hit both the grappled hero and the tentacle holding him, or only the tentacle ? For this one, roll the stealth die with the attack. On an “X” (on the stealth die), the attack misses the hero (but hits the tentacle). Otherwise it hits both the hero and tentacle.
Could threat be spent to add power dice to Constrict ? Yes.
Can tentacles gain orders from their controlling figure like an aim or dodge ? No.
If a tentacle is partway on the ship and partway off and the ship moves, what happens ? The tentacle drops off the ship and rejoins the host at the nearest point available.
If a tentacle is all the way on the ship and the ship moves, what happens ? Both the host and the tentacle (and all other tentacles) move in tandem however many number of spaces the ship moves (as if the figure was being pushed ahead of the ship).
How do tentacles interact with features of the ship such as railings, weapon mounts and cannons ? Treat the tentacles as if they have the Nimble skill, where it never costs more than one movement to enter a space. Tentacles may enter cannon spaces.