There is one other thing that I think you'll be interested to read once I have the opportunity to transcribe it. I spoke with Mitch Bunnell of Pixelux Entertainment, who spoke to me about their Digital Molecular Matter (DMM) product line. I personally am anxious to see the upcoming LucasArts games that use DMM. Look for this interview sometime post-GDC.
I may attend the rest of the physics tutorial this afternoon, but I might change over to the MS Game Developer's Day session since the physics talk is similar to past years and since I have the current slides on hard copy.