Thanks, yes I had read that before and it makes sense... In some cases I do in fact want the physics effects to be networked, so that one player could crash into a wall which would break into blocks, and those would get in the way of the following player. I tried this in my PhysX game with mixed results, it would work on a low level, but too many moving objects and one client would crap out.
I never actually did figure out how to exclude certain things, is that something that can be done in script when a physics object is loaded? During gameplay I have code that creates new physics shapes in real time, so that you have a tower or wall of TSStatic blocks that convert on-the-fly to physics objects when they are hit with a projectile. Works great, you can build a tsstatic prefab house of blocks and then explode it with a grenade

But I would love to know how to control which objects get networked, is that easy enough to do?