Ok so I found this really cool (and open source) physics engine: Open Dynamics Engine (ODE). In this project you can go around shooting spheres in the scene, watching the physics behave correctly. I also added the water from the water-project below, enhanced with a normalmapped surface.
If you would like to know more about the physics engine check this page out:
In this project I just play around a bit with lights of different intensities, where the sunlight have much higher intensity then the indoor light. It also uses a shader that crates a bloom effect by blurring the brightest parts of the scene.