rayp, looking great! Only thing I dislike is the trail at http://www.youtube.com/watch?feature=player_detailpage&v=khY6RgyVYZI#t=12s 0:13, when the rocket speeds up. It consists of multiple individual particles, which doesn't look good. Maybe try either the streak or beam flag. Or, if you have fps to spare, use more particles and place them at random places between the entitie's current pos and its pos from the last frame.
~"I never let school interfere with my education"~ -Mark Twain