I'm too lazy to register

but in reply to the physics question, yes, FS does use 'arcade physics'. Assuming you've got physics knowledge and even basic C coding abilities, it should be possible to modify that as you just have to A) make things keep on moving rather than slowing to a stop B) remove the velocity cap of objects and C) preserve objects' momentum, as of now it's moved with the craft's rotation.
The biggest problem you'd have would be AI. You'd need to recode portions of the AI to compensate for the fact that they would no longer slow to a stop; that would probably be the hardest part of any change to the physics. Missiles would be grossly inaccurate against all but the slowest targets, but they haven't been used so much in BSG besides getting shot at slow, large, targets.
Newtonian physics has been requested before, although I haven't seen any big mods ask for it, 'least not that I can remember.
You might want to link back to this thread too, since that's where most of the development is occuring.