Looks very good and is far less laggy than Twig from what I heard. It's still experimental and disabled by default, but apart from the bouncing and lag everything seem to be good. Nexuiz is finally going to have its long dreamed physics engine now 
If anyone wants to test this, you can easily do so by doing the following:
1 - Download this archive (alt link) and unpack it in the main Nexuiz folder (choose to overwrite if asked). Should work with both 2.5.2 and SVN.
2 - Start Nexuiz via the executable included in that archive.
3 - Go to Settings -> Input and at the bottom of the key mapping list select an empty userbind and click Edit. Under 'Command when pressed' write +button8 and for 'Command when released' use -button8, then bind the new mapping to any key you wish.
4 - Open the console and set 'sv_cheats 1' then 'map pb_phystest1' (without the ''s).
5 - Enjoy
Use the new key binding to pick up physical objects and drag them around.
Youtube link
