Dynamics should work relatively well but settings have to be tweaked - gravity depending on scale - then the mass and rotational mass, frictions etc etc to get something you're happy with. There are other solutions as well, the only one I can think of at the moment is Silver Bullet by Remotion haven't used it but I've heard others say positive things, could be more as well.
Here's a dynamics test that may not be anywhere close to what you're after but objects don't pass through each other...