I have created a simple model in Blender (just a simple sphere), textured it with UV-mapping. Imported the model into the Mesh Editor. Exported the mesh, created "phys" from mesh, exported that "phys". I did also export the material.
The model shows up fine in the World Editor, I attach the .phys file to the object, the material and I choosed the base to be OBJ_ITEM. And the ITEM_TYPE to be ITEM_MISC.

I build the world, and try to play it from the editor. But the model is not affected by gravity, but the player can collide with it, but still it does not move. I have seen the example with the barrels. And I have done exactly the same with my simple model.

actors built from phys made with "create from mesh" can be static only

you need to use phys geometric shapes (can be many of them), or at last resort use convex phys.

Thank you! That worked.