chains are possible but touchy to get the settings right and the scene too - there has to enough space in the links of the chains so the links don't start too 'tight'. Here are some examples, the first chain with nothing attached works mostly because of the steps per frame and the solver iterations, the second adds an object at the end of the chain but only works (for me anyway) if I reduce the mass of the object by a lot, the third as another way to do the same kind of thing with a spline with spline dynamics on it but it's not as 'real'.
4607_dynamicschains.zip