I was just playing around and thought of a way to do rope physics. It's not very useful for ingame, because you need a lot of substeps to make it realistic and slows everything down.
But it's very much fun to play with!
You can click on a sphere and drag it around to influence the rope. In the code you can also change the elasticity and the number of steps and more.
I suggest you try this out!
http://www.realgametools.net/forums/attachments/rope.DBABTW this is made in DBC.
Kevil