The beauty of the whole prose was definitely the jargon. That's what cyberpunk is, and Poxy really nailed it by parodying while at the same time giving homage to the whole genre. This could actually be a sub-story within the cyber-noir tale of Alexander Besher's "RIM" (one of the plots involved the hero, Dr. Gobi trying to rescue his 10 year old son who's trapped in a virtual reality game). Poxy, if you haven't read that, I recommend it (I heard that Robin Williams wanted to make a movie about it, but I don't see him as Gobi, nor have I heard much about it.)
But, I digress. I loved this story because of the playfulness of the whole tale (Poxy, you really have a knack for creating believable worlds where BOTH kids and adults can live in -- this is in regards to your "Kracken" tale. In other words you've got that Disney-but-with-a-mature touch.) Also, I love the pacing as it was quick and had a number of cultural homages (especially the "watergating" part). I enjoyed the dialogue that they border on ridiculous, yet at the same time very believable (hey, I'm using one of them in my sigfile!).
Also, the way you were describing the whole tale, my mind kept shifting from real, CG, then traditional animation. I love it when a story does that to me. It keeps me awake and very interested. Especially when things got "DOS-ed." Awesome.
Overall though, it's a fun read. Great job!