Tommy,
Here's what I came up with. I'm using CS2, so I'll try to explain what I did.
First I started out with two different conversions using ACR, one for the sky and one for the bird. They're both pretty extreme and there are probably better settings, but I didn't play around with them too much:
For the bird:
Exposure: +1.20
Shadows: 5
Brightness: 50
Contrast: -50
Saturation: 0
For the sky:
Exposure: +0.80
Shadows: 100
Brightness: 50
Contrast: +100
Saturation: +11
I copied both of these into one document in photoshop with the sky conversion as the background and the bird as a layer on top. I copied the sky layer and used threshold to come up with a rough layer mask for the bird layer. I cleaned up the edges of this using a 3px soft brush on the layer mask. I sharpened the bird layer using Smart Sharpen set at 90% with a 0.8 radius.
To take care of the CA around the edges of the bird, I copied the bird layer and used hue/saturation to desaturate the blues and magentas until the CA wasn't really noticeable. I hid this layer, duped the bird again and used the find edges and gaussian blur filters to make a layer mask for the desaturated layer. Again, I cleaned up this mask with a 3px soft brush.
The result isn't perfect, the edges could definitely use more work, but this is what I was able to do in 15 or 20 minutes of tinkering.
[Edit]
I forgot to mention this, though it's pretty obvious: I cropped the shot to make the bird more prominent.
That's a great capture of a bird in flight. Makes me think I should go get that 85mm. 
chap
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