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I read those things on the homepage about the physics and I saw the part with "Another problem with the perfect collision is that very tiny objects with lots of polies can cause lags as well" and I was thinking. Unreal Engine 3 has a very awesome technology that adds bumpmapping to low poly models making them appear much more 3D. Since I saw those old images with bumpmapping on the Cell games arena, couldn't you make the models low poly and add bump mapping to them to make them look as detailed as you wanted them to look?