SLOG has a post about a brief raising of the NDA veil over meshes for SL, and just what was revealed during that interval. Get the details there; I don't want to spread bad data based on a misinterpretation I might make. That said, it sounds very exciting.
UPDATE: Be sure to watch at least the first video there, of the creature playing Paganini. It looks like it's an example of something the blog post mentions, "rigging", which allows actual wearable clothing rather than body paint.
UPDATE: I'm kicking myself, remembering the first mesh demo video which showed a mesh figure of the Hulk. It just begs for a filk... "I was there at Linden Lab late one night, when my eyes beheld an eerie sight... (it was a mesh!) It was a Monster Mesh..."