Here are the scripts.
Attach the ball_drop.lua script to the entitys dropping out of the sky, make them always active, physics on and isimmobile no. Play with the physics weight and friction till you get them behaving the way you want.
Attach the balldropdecal.lua to the decals, you need enough decals to keep up with the ball dropping rate.
Word of warning on the quatlib library, it has a fix in it for a bug cybernescence reported so if you have used it in any other scripts you may need to tweak them, basically any x or z rotations need to be negated, if you need me to re-issue any previous scripts that use the library let me know.
These scripts demonstrate inter-script communication, the drop script calls a function in the decal script to initialise the decal sequence then the decal scrip calls one in the drop script to release the ball. It is a simple way to sequence events between scripts and I use it a lot in for example the helicopter scripts.
Been there, done that, got all the T-Shirts!