Recently i found a new method that has been discovered by guy named Ladislav Kavan
basically it reduces artifacts of linear blend skinning( maya smooth skinning), which happens when bones rotates a lot.. specially during twisting, otherwise knows as candyWrap effect he describe it as linear combination of dual quaternions.
another guy named Guido de Haan has implemented it inside maya as plugin. check his page to download it. well i am playing with it right now.. hope to put some results over here.
Another interesting link i found which shows dual quaternion implementation inside softimage as ICE network.( i personally find it quite cool). check out there demo.