Can any seasoned Away3D gurus tell me if its possible to create a Jellyfish simulation as good as this webgl demo?

http://aleksandarrodic.com/p/jellyfish/

Of course its possible, in fact chances are high it will be better!
Starting by the data for instance…

Thanks Fabrice!

Can you point me to any demos even remotely similar done in Away, fluid sims, etc?

This one is more about interpolating vertices. You could start checking out the vertex animator for instance.

This *might* give some clues, though it was in an a very early version of Away3D 4.
http://videometry.net/broomstick/Manta.html

Good Luck!