There are a few ways to do this, here's one:
The blobby objects can be created as flat rectangles with the graduated edge effect managed using a transparency map. The trans map is a bitmap with black edge and white centre, softly graded from one to the other as required (in my test below the edge is a bit too sharp), loaded into the texture area of the Transparency attribute. With the specular value set to 1.0 and white, the result is a glowing white blob with edges fading to transparent (transparency of 1.0 is fully opaque, 0.0 is transparent, which is a bit counter intuitive...the field should really be called 'opacity' but I digress). This method doesn't require alpha masks or anything like that.
I used 3D extruded text for the test but it would probably have been better to use images for these in the Specular texture field, ie. create a white background/black text image for each. Regarding the motion in my very rough test below, each text rectangle is a child of the sphere/stick thing and rotates with it, however their 'Orientation' field is set to 'Other' with 'world' in the reference field, so their orientation remains aligned to the 'world' (ie. does not rotate).
The transmap and Anim8or file are below if picking it apart would be helpful.
EDIT: Forgot to mention, you will need to UV map the texture to the rectangle so it aligns correctly. If working in Front view, just modifying the UV generally sets the texture to the full width and height of the rectangle by default with no further tweaking required.
