Jay Stelly is a senior engineer at Valve, and on the last day of the conference he kicked off the morning with a discussion on Physics in Half-Life 2 (HL2). The physics simulation, and inventive physics-related puzzles used throughout the game, were complicated elements to implement. He discusses the problems they faced, relates some of the humorous demos they used to flesh out their ideas, and laid out the ways that good engineering can make design that much better.