In our current game, Bullet unfortunately suffers from a lot of tunneling. Tunneling often occurs between an intersection of two objects. For instance when firing off a large object to a stack of cubes, the fired object tunnels its way exactly through the intersection of the stacked objects, leaving the stack practically untouched. Apart from looking silly, clearly this is just wrong and undesired behavior.
We tried a lot to fix this:
* shoot at lower speed
Currently our object (1x1x1 meter) travels at approx 100 m/s (linear velocity value is 100; I assume this is in m/s?). The object doesn't really have to travel at high speeds in order to tunnel. Lowering its speed would render the whole firing principle invalid and is therefore not an option.
* More substeps
Currently the game runs at 1 substep (and 1 / 120 fixed timeframe). If we increase the number of substeps the framerate on our target platform (Wii) drops significantly. Therefore we need to stick to the 1 substep maximum.
* Lower fixed timeframe
If I lower the fixed timestep from 1/120 to 1/360, tunneling hardly occurs. But then the simulation looks like as if it's been played on the Moon. Slow motion effects are cool, but not constantly

* Increase object size
The current object is well over 1x1x1 meter, and yet it still tunnels through 'cracks' that are only a couple of centimeters wide. Increasing the object size would look and play bad and is therefore also ruled out.
Honestly I find it very strange that a relatively slow and large object, like the one we use, can tunnel that easily. Is there perhaps some missing anti-tunneling setting that I'm missing here?

Anyhow, if anyone has experienced similar problems with Bullet, I'd like to know how they dealt with it.
Looking forward to your response.
Martijn