Been playing around with exploiting the capsule physics primitive in Blender 2.5 (= btCapsuleShapeZ), the capsule primitive is actually a very efficient and versatile primitive... most (almost all) of the physics in this tech test / demo were created using capsule primitives:
Will "Phymec Tools" be open source. Can I have it now!? Haha.
I watched your last video where you import phymec_tools. Gee I would like to get my hands on that! It looks like you are using a bezier curve and generating a group of your special capsule objects along the curve. I am guessing you are using the rigid body joint modifier to create the rope simulation.
So you create a curve, then you create a python function that accepts a few parameters, I'm guessing concentration of capsules among others. The function also sets up the rigid joint modifier for each capsule. Then, voila.