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Awesome demo! One question. When you walk up to the corners of the block you climb up it. Was this intensional?

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Nope, it wasn't intentional.
It's a bug in my player code. I wrote that player code very fast and didn't have the time to fix that bug.

I may post another demo in the contributions forum sometime soon.
I have taken out the collision sounds that the newton player collisions make all of the time(which causes a low framerate if you have an older sound card and it gets very annoying)...
You will now be able to stand on the objects like in HL2.
I have made the objects to be shootable by all weapons.
I am now working on adding picking up the objects like in HL2.