Physics Engines For Flash
As we all know, there are many Physics Engines for Flash now. Each have their own Pros and Cons, but Actionscript 3.0 provides increase in performance compared to Actionscript2.0. Whatever might be your requirement for Physics in your Flash design, we are going to talk about some useful Physics Engines available now for Flash.
ActionScript Physics Engine (APE)

APE (Actionscript Physics Engine) is a free AS3 open source 2D physics engine for use in Flash and Flex, released under the MIT License. APE is written and maintained by Alec Cove. The latest version available 0.45 alpha. You can get more info on APE at http://www.cove.org/ape/.
The fisix engine is a verlet based physics engine for flash written in Actionscript 3.0. This engine is aimed towards use in games and other relatively cpu intensive real-time applications. The current version available is 0.5 Alpha.
This engine has got good documentatio in Wiki. You can find tutorials at http://wiki.fisixengine.com/index.php?title=FisixTutorials.
FOAM is primarily intended as a resource for developers interested in simulating physics. It has a carefully thought out OOP structure and modular design.

Currently available version is 0.1 Alpha.
Box2DFlashAS3 is an open source port of Erin Catto's powerful c++ physics library Box2D. Its the most updated engine with current version being 2.0.1.

Full sourcecode for the engine and examples can be downloaded from http://sourceforge.net/projects/box2dflash/.
Glaze : http://code.google.com/p/glaze/
A game and physics engine for Flash including:
- Rigid Body Dynamics
- Scene management
- Line of sight
- User Input
- Scrolling
- AI
You can view online demo at http://home.planet.nl/~borst595/glaze.html
This physics engine works with penetration detection of any object. Source for this engine is available at http://lab.andre-michelle.com/physics-engine.

These are a few which i could list from many Physics Engines available now. Try these and implement Physics in your Flash applications.