diff --git a/TrueCraft.API/Entities/IPhysicsEntity.cs b/TrueCraft.API/Entities/IPhysicsEntity.cs
index e913c2f..65fc35e 100644
--- a/TrueCraft.API/Entities/IPhysicsEntity.cs
+++ b/TrueCraft.API/Entities/IPhysicsEntity.cs
@@ -11,6 +11,7 @@ namespace TrueCraft.API.Entities
         Vector3 Velocity { get; set; }
         float AccelerationDueToGravity { get; }
         float Drag { get; }
+        float TerminalVelocity { get; }
 
         bool BeginUpdate();
         void EndUpdate(Vector3 newPosition);
diff --git a/TrueCraft.API/Vector3.cs b/TrueCraft.API/Vector3.cs
index 289acee..aa3aaf9 100644
--- a/TrueCraft.API/Vector3.cs
+++ b/TrueCraft.API/Vector3.cs
@@ -54,6 +54,20 @@ namespace TrueCraft.API
             return new Vector3(Math.Floor(X), Math.Floor(Y), Math.Floor(Z));
         }
 
+        /// <summary>
+        /// Clamps the vector to within the specified value.
+        /// </summary>
+        /// <param name="value">Value.</param>
+        public void Clamp(double value)
+        {
+            if (Math.Abs(X) > value)
+                X = value * (X < 0 ? -1 : 1);
+            if (Math.Abs(Y) > value)
+                Y = value * (Y < 0 ? -1 : 1);
+            if (Math.Abs(Z) > value)
+                Z = value * (Z < 0 ? -1 : 1);
+        }
+
         /// <summary>
         /// Calculates the distance between two Vector3 objects.
         /// </summary>
diff --git a/TrueCraft.Core/Entities/Entity.cs b/TrueCraft.Core/Entities/Entity.cs
index 0a234aa..3681fb9 100644
--- a/TrueCraft.Core/Entities/Entity.cs
+++ b/TrueCraft.Core/Entities/Entity.cs
@@ -99,6 +99,9 @@ namespace TrueCraft.Core.Entities
 
         public virtual void Update(IEntityManager entityManager)
         {
+            // TODO: Losing health and all that jazz
+            if (Position.Y < -50)
+                entityManager.DespawnEntity(this);
         }
 
         protected bool EnablePropertyChange { get; set; }
diff --git a/TrueCraft.Core/Entities/ItemEntity.cs b/TrueCraft.Core/Entities/ItemEntity.cs
index 65a15c2..fa31d1c 100644
--- a/TrueCraft.Core/Entities/ItemEntity.cs
+++ b/TrueCraft.Core/Entities/ItemEntity.cs
@@ -123,16 +123,22 @@ namespace TrueCraft.Core.Entities
                     OnPropertyChanged("Metadata");
                 }*/
             }
+            base.Update(entityManager);
         }
 
         public float AccelerationDueToGravity
         {
-            get { return 0.08f; }
+            get { return 0.4f; }
         }
 
         public float Drag
         {
-            get { return 0.98f; }
+            get { return 0.2f; }
+        }
+
+        public float TerminalVelocity
+        {
+            get { return 1.96f; }
         }
     }
 }
diff --git a/TrueCraft.Core/Logic/BlockProvider.cs b/TrueCraft.Core/Logic/BlockProvider.cs
index 480a151..38a7163 100644
--- a/TrueCraft.Core/Logic/BlockProvider.cs
+++ b/TrueCraft.Core/Logic/BlockProvider.cs
@@ -35,7 +35,11 @@ namespace TrueCraft.Core.Logic
             var entityManager = server.GetEntityManagerForWorld(world);
             var items = GetDrop(descriptor);
             foreach (var item in items)
-                entityManager.SpawnEntity(new ItemEntity(new Vector3(descriptor.Coordinates) + new Vector3(0.5), item));
+            {
+                var entity = new ItemEntity(new Vector3(descriptor.Coordinates) + new Vector3(0.5), item);
+                entity.Velocity += new Vector3(MathHelper.Random.NextDouble());
+                entityManager.SpawnEntity(entity);
+            }
         }
 
         public virtual bool IsSupported(BlockDescriptor descriptor, IMultiplayerServer server, IWorld world)
diff --git a/TrueCraft/EntityManager.cs b/TrueCraft/EntityManager.cs
index b2bf84d..59779e4 100644
--- a/TrueCraft/EntityManager.cs
+++ b/TrueCraft/EntityManager.cs
@@ -177,6 +177,17 @@ namespace TrueCraft
                 spawnedClient = (RemoteClient)GetClientForEntity(entity as PlayerEntity);
             client.KnownEntities.Add(entity);
             client.QueuePacket(entity.SpawnPacket);
+            if (entity is IPhysicsEntity)
+            {
+                var pentity = entity as IPhysicsEntity;
+                client.QueuePacket(new EntityVelocityPacket
+                    {
+                        EntityID = entity.EntityID,
+                        XVelocity = (short)(pentity.Velocity.X * 320),
+                        YVelocity = (short)(pentity.Velocity.Y * 320),
+                        ZVelocity = (short)(pentity.Velocity.Z * 320),
+                    });
+            }
             if (entity.SendMetadataToClients)
                 client.QueuePacket(new EntityMetadataPacket(entity.EntityID, entity.Metadata));
             if (spawnedClient != null)
@@ -265,6 +276,8 @@ namespace TrueCraft
             while (PendingDespawns.Count != 0)
             {
                 while (!PendingDespawns.TryTake(out entity));
+                if (entity is IPhysicsEntity)
+                    PhysicsEngine.RemoveEntity((IPhysicsEntity)entity);
                 for (int i = 0, ServerClientsCount = Server.Clients.Count; i < ServerClientsCount; i++)
                 {
                     var client = (RemoteClient)Server.Clients[i];
diff --git a/TrueCraft/PhysicsEngine.cs b/TrueCraft/PhysicsEngine.cs
index 42ed0a8..f419af7 100644
--- a/TrueCraft/PhysicsEngine.cs
+++ b/TrueCraft/PhysicsEngine.cs
@@ -40,7 +40,8 @@ namespace TrueCraft
         {
             if (!Entities.Contains(entity))
                 return;
-            Entities.Remove(entity);
+            lock (EntityLock)
+                Entities.Remove(entity);
         }
 
         private BoundingBox TempBoundingBox;
@@ -57,6 +58,7 @@ namespace TrueCraft
                     {
                         entity.Velocity *= entity.Drag * multipler;
                         entity.Velocity -= new Vector3(0, entity.AccelerationDueToGravity * multipler, 0);
+                        entity.Velocity.Clamp(entity.TerminalVelocity);
                         if (entity is IAABBEntity)
                             CheckWithTerrain((IAABBEntity)entity, World);
                         entity.EndUpdate(entity.Position + entity.Velocity);
@@ -69,7 +71,7 @@ namespace TrueCraft
         private void CheckWithTerrain(IAABBEntity entity, IWorld world)
         {
             Vector3 collisionPoint, collisionDirection;
-            if (entity.Position.Y + entity.Velocity.Y >= 0 && entity.Position.Y + entity.Velocity.Y <= 255) // Don't do checks outside the map
+            if (entity.Position.Y > 0 && entity.Position.Y <= 127) // Don't do checks outside the map
             {
                 bool fireEvent = entity.Velocity != Vector3.Zero;
                 // Do terrain collisions
@@ -80,7 +82,7 @@ namespace TrueCraft
                 }
                 if (AdjustVelocityY(entity, world, out collisionPoint, out collisionDirection))
                 {
-                    entity.Velocity *= new Vector3(0.2, 1, 0.2); // TODO: More sophisticated friction
+                    entity.Velocity *= new Vector3(0.1, 1, 0.1); // TODO: More sophisticated friction
                     if (fireEvent)
                         entity.TerrainCollision(collisionPoint, collisionDirection);
                 }
@@ -114,22 +116,19 @@ namespace TrueCraft
             if (entity.Velocity.X < 0)
             {
                 TempBoundingBox = new BoundingBox(
-                    new Vector3(entity.BoundingBox.Min.X + entity.Velocity.X, entity.BoundingBox.Min.Y, entity.BoundingBox.Min.Z) - (entity.Size / 2),
-                    new Vector3(entity.BoundingBox.Max.X, entity.BoundingBox.Max.Y, entity.BoundingBox.Max.Z) - (entity.Size / 2)
-                );
+                    new Vector3(entity.BoundingBox.Min.X + entity.Velocity.X, entity.BoundingBox.Min.Y, entity.BoundingBox.Min.Z),
+                    entity.BoundingBox.Max);
 
                 maxX = (int)(TempBoundingBox.Max.X);
-                minX = (int)(TempBoundingBox.Min.X + entity.Velocity.X);
+                minX = (int)(TempBoundingBox.Min.X + entity.Velocity.X) - 1;
             }
             else
             {
                 TempBoundingBox = new BoundingBox(
-                    entity.BoundingBox.Min - (entity.Size / 2),
-                    new Vector3(
-                    entity.BoundingBox.Max.X + entity.Velocity.X, entity.BoundingBox.Max.Y, entity.BoundingBox.Max.Z) - (entity.Size / 2)
-                );
+                    entity.BoundingBox.Min,
+                    new Vector3(entity.BoundingBox.Max.X + entity.Velocity.X, entity.BoundingBox.Max.Y, entity.BoundingBox.Max.Z));
                 minX = (int)(entity.BoundingBox.Min.X);
-                maxX = (int)(entity.BoundingBox.Max.X + entity.Velocity.X);
+                maxX = (int)(entity.BoundingBox.Max.X + entity.Velocity.X) + 1;
             }
 
             // Do terrain checks
@@ -141,8 +140,8 @@ namespace TrueCraft
                 {
                     for (int z = minZ; z <= maxZ; z++)
                     {
-                        var position = new Vector3(x, y, z);
-                        var boundingBox = BlockPhysicsProvider.GetBoundingBox(world, (Coordinates3D)position);
+                        var position = new Coordinates3D(x, y, z);
+                        var boundingBox = BlockPhysicsProvider.GetBoundingBox(world, position);
                         if (boundingBox == null)
                             continue;
                         blockBox = boundingBox.Value.OffsetBy(position);
@@ -213,22 +212,19 @@ namespace TrueCraft
             if (entity.Velocity.Y < 0)
             {
                 TempBoundingBox = new BoundingBox(
-                    new Vector3(entity.BoundingBox.Min.X, entity.BoundingBox.Min.Y + entity.Velocity.Y, entity.BoundingBox.Min.Z) - (entity.Size / 2),
-                    new Vector3(entity.BoundingBox.Max.X, entity.BoundingBox.Max.Y, entity.BoundingBox.Max.Z) - (entity.Size / 2)
-                );
+                    new Vector3(entity.BoundingBox.Min.X, entity.BoundingBox.Min.Y + entity.Velocity.Y, entity.BoundingBox.Min.Z),
+                    entity.BoundingBox.Max);
 
                 maxY = (int)(TempBoundingBox.Max.Y);
-                minY = (int)(TempBoundingBox.Min.Y + entity.Velocity.Y);
+                minY = (int)(TempBoundingBox.Min.Y + entity.Velocity.Y) - 1;
             }
             else
             {
                 TempBoundingBox = new BoundingBox(
-                    entity.BoundingBox.Min - (entity.Size / 2),
-                    new Vector3(
-                    entity.BoundingBox.Max.X, entity.BoundingBox.Max.Y + entity.Velocity.Y, entity.BoundingBox.Max.Z) - (entity.Size / 2)
-                );
+                    entity.BoundingBox.Min,
+                    new Vector3(entity.BoundingBox.Max.X, entity.BoundingBox.Max.Y + entity.Velocity.Y, entity.BoundingBox.Max.Z));
                 minY = (int)(entity.BoundingBox.Min.Y);
-                maxY = (int)(entity.BoundingBox.Max.Y + entity.Velocity.Y);
+                maxY = (int)(entity.BoundingBox.Max.Y + entity.Velocity.Y) + 1;
             }
 
             // Clamp Y into map boundaries
@@ -250,8 +246,10 @@ namespace TrueCraft
                 {
                     for (int z = minZ; z <= maxZ; z++)
                     {
-                        var position = new Vector3(x, y, z);
-                        var boundingBox = BlockPhysicsProvider.GetBoundingBox(world, (Coordinates3D)position);
+                        var position = new Coordinates3D(x, y, z);
+                        if (!World.IsValidPosition(position))
+                            continue;
+                        var boundingBox = BlockPhysicsProvider.GetBoundingBox(world, position);
                         if (boundingBox == null)
                             continue;
                         blockBox = boundingBox.Value.OffsetBy(position);
@@ -323,22 +321,20 @@ namespace TrueCraft
             if (entity.Velocity.Z < 0)
             {
                 TempBoundingBox = new BoundingBox(
-                    new Vector3(entity.BoundingBox.Min.X, entity.BoundingBox.Min.Y, entity.BoundingBox.Min.Z + entity.Velocity.Z) - (entity.Size / 2),
-                    new Vector3(entity.BoundingBox.Max.X, entity.BoundingBox.Max.Y, entity.BoundingBox.Max.Z) - (entity.Size / 2)
-                );
+                    new Vector3(entity.BoundingBox.Min.X, entity.BoundingBox.Min.Y, entity.BoundingBox.Min.Z + entity.Velocity.Z),
+                    entity.BoundingBox.Max);
 
                 maxZ = (int)(TempBoundingBox.Max.Z);
-                minZ = (int)(TempBoundingBox.Min.Z + entity.Velocity.Z);
+                minZ = (int)(TempBoundingBox.Min.Z + entity.Velocity.Z) - 1;
             }
             else
             {
                 TempBoundingBox = new BoundingBox(
-                    entity.BoundingBox.Min - (entity.Size / 2),
-                    new Vector3(
-                    entity.BoundingBox.Max.X, entity.BoundingBox.Max.Y, entity.BoundingBox.Max.Z + entity.Velocity.Z) - (entity.Size / 2)
+                    entity.BoundingBox.Min,
+                    new Vector3(entity.BoundingBox.Max.X, entity.BoundingBox.Max.Y, entity.BoundingBox.Max.Z + entity.Velocity.Z)
                 );
                 minZ = (int)(entity.BoundingBox.Min.Z);
-                maxZ = (int)(entity.BoundingBox.Max.Z + entity.Velocity.Z);
+                maxZ = (int)(entity.BoundingBox.Max.Z + entity.Velocity.Z) + 1;
             }
 
             // Do terrain checks
@@ -350,8 +346,8 @@ namespace TrueCraft
                 {
                     for (int z = minZ; z <= maxZ; z++)
                     {
-                        var position = new Vector3(x, y, z);
-                        var boundingBox = BlockPhysicsProvider.GetBoundingBox(world, (Coordinates3D)position);
+                        var position = new Coordinates3D(x, y, z);
+                        var boundingBox = BlockPhysicsProvider.GetBoundingBox(world, position);
                         if (boundingBox == null)
                             continue;
                         blockBox = boundingBox.Value.OffsetBy(position);
diff --git a/TrueCraft/Program.cs b/TrueCraft/Program.cs
index 23d450b..6eccf90 100644
--- a/TrueCraft/Program.cs
+++ b/TrueCraft/Program.cs
@@ -24,7 +24,6 @@ namespace TrueCraft
             server.AddLogProvider(new ConsoleLogProvider(LogCategory.Notice | LogCategory.Warning | LogCategory.Error | LogCategory.Debug));
             #if DEBUG
             server.AddLogProvider(new FileLogProvider(new StreamWriter("packets.log", false), LogCategory.Packets));
-            server.EnableClientLogging = true;
             #endif
             CommandManager = new CommandManager();
             server.ChatMessageReceived += HandleChatMessageReceived;