I think I'm having more fun learning to paint than actually committing to a mod lately.

Anyway, based off Inyssius' suggestions, I came up with this...

...and I think she's just human enough for us to relate to, but alien enough to avoid that slap-some-flippers-on-a-blue-elf look that was happening before. I still like the Naija-like skin tone on her though, or as I affectionately refer to now as "statue of liberty" green. I might try out some multi-color combinations, like markings on her body and such. I tried a few other ideas, like removing the tentacles and adding a tail, but I think keeping her more humanoid, but without hair is the way to go. There ain't too many furry fish out there, as far as I know. At least it's better than the she-goblin thing I drew before.

Oh, and here's a version of her naked...
http://i82.photobucket.com/albums/j252/Echolocating/Aquaria/concept-006.jpg...in the name of art, of course.

The more I think about this alien character, the more I think she might need an environment suit of sorts, at least some mechanism for filtering the water she breaths (like a gas-mask). That way when you retreat back to your home base and she can kick back, relax and take off her "work clothes", it'll feel more like a breath of fresh air for her (and hopefully, the player as well). I think the premise of her presence in the Aquaria/Earth world is that she crash landed in a space ship and sunk into the ocean. Perhaps the Aquarians beseech her to defeat some evil doers. Sort of a merger of technology and ancient magic thing going on. Anyway, hopefully the ideas will settle soon so than I can commit to something and actually start working on a mod. Still, practice makes perfect, I suppose.
Also, now that I'm thinking about how to break her limbs up to animate her, I see (and appreciate better) why Naija was designed in such a way with her outfit and other forms.