I saw some earlier topics where ppl have done snakes with just a lattice or path. So I read about this IK-spline that excist in other 3d-softwares and thought that I should try it in blender.
http://82.182.188.70/blender/worms.avi
*codec 3ivx D4 4.5.1 is needed.
Edit, new version with divX codec and somewhat improved, but there are still some jerks in em.
http://82.182.188.70/blender/worms2.avi