Yes, I'd like an answer to that, also, brycetech ... and do they have any trousers in my size, with a hole to accommodate the tail?

With changes this radical, postapulcino, you might be better off creating two animations (one of the man, one of the bug) and then use traditional 2D morphing software to simulate the transformation, as demonstrated in the Michael Jackson video, "Black or White".

Or you could try brycetech's approach and then use the 2D morphing software in postwork to smooth out the transition.

Here's a link to a freeware PC morphing utility, if you're interested: WinMorph