I'm thinking you should carry this on, whether or not you enter the comp, you were doing a great job!
If you manage to get permission to use the ref photos you mentioned you could always carry on the thread you started, and if you can't use said photo's, well carry it on anyway!
I think it's pretty obvious that you aren't trying to hide the fact it wasn't your mesh, lol.
I for one would be interested to see what you do with it and how the end result would look, so either way, I hope you carry it on. You've clearly stated that it's Jay's mesh now anyway, and I can't see the harm in using it to do your own thing, as long as he doesn't mind. Modifying someone else's mesh is another part of 3d anyway, you'd have to do it at some point if you were a modeller for a company, so really it's just another part of the creative experience that is 3d!
If you decide you won't carry on posting your progress, I hope you have fun playing about with it anyway.
Last edited by Dango77 : 13-01-2010 at 11:53 PM.