Hi!
Take a look at this video:
I'm interested in making those rope-physics and object creation in real-time? Can anyone point me into the right direction?
Sure thing. Here is the right direction:
You could try the Rope Script by Jake from www.reverieinteractive.com:
http://forum.unity3d.com/threads/35006-Rope-Script-V2-now-availiable-8-08-10
You could use Unitys physics engine for this. Some rigidbodies combined with hinge joints. Try looking in the documentation and play a little in the editor with this.