after playing with your project, we believe there are a few commands you require that dont exist yet, which we will implement for the next release.
* physics.enableOnCollideStart(id, true); -- For enabling the onCollision_Start(hitID) event on the selected object.
* physics.enableOnColliding(id, true); -- For enabling the onCollision_Stay(hitID) event on the selected object.
* physics.enableOnCollideEnd(id, true); -- For enabling the onCollision_End(hitID) event on the selected object.
Note: In the scene settings panel, check the debug physics property to display physics meshes in the scene, then you will see the below comments meaning.

In your project scene, i noticed that you were moving the object using entity.move();
because it is a physics mesh you wish to move, you need to use the command physics.setVelocity(bID,0,0,10);
This will then move the entity with the physics mesh.
Another note: it is wise to grab the id of the physics body when you call physics.addBody(); e.g.
bID = physics.addBody(e.mesh,1,1)
physics.setVelocity(bID,0,0,10);
Physics properties work from the physics body ID.
Another noted problem: The large ball could not have the dynamic flag set to static when physics.addBody() is called.
This will be checked out aswell.
Thanks anton for helping improve the lua libraries.
