These are my thoughts from my last move. I've avoided looking at what konfuzed has posted so that his most recent move (if he's posted it yet) doesn't affect my thoughts.
So like I said earlier my move at S4 was threatening to take the corner, and that's what I intended to do if he tenukied. I decided to do something different instead, but I think it's important to note that I still consider this a follow-up to S4. I've learned the hard way that it's very important that when you threaten to do something you have to be willing to follow up on it. If you're not and your opponent decides to ignore the threat, there's a good chance he'll get to come back and defend it later. If you follow through then it becomes a trade: your profit locally for your opponents profit elsewhere. If you let him draw you in to his choice of move, then he may get to play there for free.
With that in mind, and especially considering that Konfuzed's move doesn't seem to threaten much, it seemed obvious that I should take the corner. If following up on S4 is a mistake then playing S4 in the first place was an even bigger mistake, but even if taking the corner wasn't big enough to warrant S4, I think I should take what profit I can now that I've played it. That being said though, I looked at the situation and I realised that black had a pretty good reply to me taking the corner.
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Normally extending probably wouldn't be a good idea because it allows white to attack the marked black stone, but in this case it also weakens the marked white stones, which are a lot more important for a few reasons, but most importantly, the black stone is only part of black's group, but white's two stones are the entirety of the white group. (Edit: Maybe I was wrong about this; the black stones look low and unhappy, and the marked white stones still aren't in any danger.)
So I don't like the exchange of white R3 for Black G3, but I think approaching from the other side still takes advantage of S4 because it makes taking the corner more important. If black black doesn't answer white's move in the corner, then an attack cutting off the marked black stone also threatens the life of the K3 and N3 stones.
I see three ways this can go
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Black decides to avoid letting white take the corner in sente and replies to

by defending the corner in gote. I'm not sure who this series of exchanges favours, so I'm not dissatisfied with this.

and

seem about equal but it's hard to say how much

and

are worth.
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Black decides to take another big point and white gets to take the corner in sente. I don't like letting black take more elsewhere but the exchange of

for

is very good for white, and white ends up with sente.
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Black just ignores everything and white goes to town on his group. Obviously Konfuzed isn't going to be quite so passive in his moves elsewhere, but I think if you view each number move as stages of play (so white might reply to black's tenukis) then this is a good indication of what I expect.