People have asked me how this smoke effect was done, so I am providing this blend file to show people. The video for the smoke effect can be seen at:
http://vimeo.com/10156657
The smoke was made to be more unrealistic with a thick "cotton candy" feel to it.
If you look at the texture tab for the smoke domain, you will see two textures applied to the domain's material. The first is a volume texture that determines the density of the smoke. The second texture is a blend texture with a color ramp, which creates the color for the smoke. Play around with the color ramp to change the color of the smoke. You could change the blend texture to a different type for various effects, like use a marble texture to create stripes across the smoke.
How many time do you spend to render this??? This is very good!!
@miuzik: You will need to go to the first frame of the animation and then press play for it to start baking in a way that you can stop. I think the latest SVN version of blender allows you to press the "bake" button and stop the bake though. It didn't before, you had to wait for the bake to finish, which would be hours. Before you start playing the animation to bake, you might want to change the domain resolution to a different number and then switch it back to the original number. This will reset the cache. Make sure you are on frame 1 when you reset the cache like this.