I have spun up the first bobbin of the merino/tencel roving. There is still room on the first bobbin for more yarn, but I'm trying to at least approximate the same spinning order for the colors between the two plies. Once I get the second set of three pre-drafted roving bits spun, I'll look at what's left of the roving and divide it lengthwise for the last of the spinning.
I have definitely decided on making this a two-ply lace weight. I think it would be beautiful in a water- or sea-themed shawl. Creatures of the Reef might work, but I'm also considering MMario's Spanish Armada. I'm not sure I'll end up with quite enough yarn to knit Spanish Armada unless I use larger needles (size 7 or 8) than I would typically use for lace. MMario says he's done the whole thing with 1000 yards on size 8 needles. Other knitters have used 1400-1500 yards, but smaller needles.
On the Critter front, I have woven in the ends on one of the Gator Mitts and have finished the second mitt. I got caught up in cooking and cleaning this evening and didn't get any further knitting done.