i just did Kaon on HM last nite. the Mercs casued alot of problems, but then once we figured out that if u CC one and kill the other ASAP (assuming there are 2 in mob) and interrupt "constrict" ("The Merc stun is interruptable, if you have no interrupts or it's on cd, you can stop it through knockbacks or stuns." this isnt true i was interuppting them all the time) they arent too much an issue, and besdes its called HARD mode for a reason.
the bloated guys were more annoying than the Mers (in my opinion), if they pop near yer healer or in your party, its almost certain you are going to wipe.