Quote: "Yes physics can be turned off by making the item static or in lua by using gravityoff(e) command"
Not quite true. There is a bug still unresolved here. Even if you turn gravity off in script, if physics are on in the entity properties, then it will still fall to the ground as if it had gravity. Only if you turn physics off in the properties will you get physics and gravity truly off. But then your entity can no longer collide with anything. So, it makes so many possibilities impossible currently.
System Specs: OS - Windows 7 Home Premium 64-bit SP1, CPU - AMD Phenom II X4 945, 3.0Ghz, RAM - 8Gb DDR3, GFX Card - 2048MB NVIDIA GeForce GT 640, FPSC-R Version - Beta 1.0085