During the last few weeks I was busy with another project:
"solving the block stacking problem with an evolutionary algorithm".
I was responsible for holding the presentation about the paper on the conference EA-2007 in Tours. we achieved to get the award for ' the best students paper'. YAY!
Now that is finished and I can finally take care of my beloved physics.
For now we will take ODE as engine. If somebody has something more suitable, tell me...
On wikipedia it is written that it was used for S.T.A.L.K.E.R, which would mean that it is pretty powerful.
The only tutorial I found until now was broken.

The most important function for you at this stage might be the collision detection, so if an 'intelligent' interface is provided, the engine can be still replaced later.
So long Setsuka