Tree Colision - dynamic objects pierce thru

Hi,
I am trying to use MogreNewt to create a sceneeditor kind of tool. I am using Ogrestudio (which has Newton 1.53) with Newton. I ran into the following issues -
1. An object placed on the floor (an mesh with Treecollision) pierces through the node. How can I prevent this?
2. An object placed on a floor takes a long time to settle down. i.e. it slowly comes to a stable position from the dropped position. Is this something to do with the NewtonUpdate timer/ticks?

Any ideas /pointers on these queries is greatly appreciated.

Thanks in advance,
CCC