You may have heard about the Half-Life 2 source code from a month ago being leaked. The interesting part to me is it reportedly includes parts of the Havok game dynamics SDK, and Second Life 1.2 will use Havok 2.2 for physics. (This may refer particularly to upgrading to 2.2, and that SL already uses Havok, instead of SL moving to Havok as I had previously assumed.) That's a pretty good idea, actually, using an off-the-shelf physics engine, as that's not Second Life's area of expertise, so they should outsource it.
