Developing the look for Foxy as the main villain was fun. At first we were exploring all sorts of ideas---Foxy as a dark-helmeted evil warrior, or as a fat Jabba-style criminal, and we even played with various alien versions of her. We just wanted to create a great archetypal villain that was the perfect cheesy-sci-fi counterpart of Ace. Along these lines, the story team started pushing this idea of a beautiful-but-dangerous villain with an eyepatch and who had some kind of vague love-interest history with Ace. I thought this idea was perfect, and her design almost flowed automatically from that point onward.
Note again how the final stage of design was to "Chicken Little-ize" the design, making things more simple and streamlined, and pushing the proportions almost too far for comfort. Oh yeah, and we transferred the idea of the original Foxy's braces to become James-Bond-"Jaws" metal teeth.
Once again, the art by others on the project contributed substantially to the final look of Foxy. This was a collaborative process, which I think is what helped us reach such successful designs in the end.