I just recently got the hang of the blender interface and as I've been experimenting with it I noticed it has a physics engine in it for the realtime engine. I read in the readme that it is disable though. However when it is reenabled in future versions will it be possible to use the physics engine for creating renderable animations? Or will it only be possible to use it with the game engine?

it is possible now, but just as limited

look on elysiun, there is a script that will export motion from the game engine (even dynamic motion) into an ipo

2.25 has the game engine

yeah, gametoipo...

but it isn't such a good solution for simulating physics in linear animation. and it relies heavily on ram.

Dani