This is prolly a stupid question but is there a way to use the physics engine for animation?
yes there is, but you would get more replies if you post this question in the user forums http://www.elysiun.com/forum/
there is a python script that will bake things from the game engine into IPO's. and in the next release there will be a newley intergrated physics engine aimed for animation.
One quick question.... could you give me the name of the script so I can keep up with it 'till the new release comes out?