well for the skin you can use a tga file with an alpha layer, problem is you might end up with stupid z-sorting errors...else try using those WED tags like flare, bright etc. (don't use or know which does what)

for the moving of the skin use these kind of commands:
my.u -= 0*time;
my.v -= 12.05*time;
wait (1);

u moves the skin the one way (horizontal or vertical) and v does the other.

not sure about the colour changing but it'll probably require some sort of shader and I know nothing about that.