I believe the new physics will be for the new S-3 first (test bed) then other tankers (maybe new models as well).. That was the original goal, if it's changed since then we don't know.
The edm file goes in the - Shapes folder
the textures go in the - Textures folder
in the entry file it should have the
mount_vfs_texture_path (current_mod_path.."/Textures")
line.
For testing I don't have textures ZIPped up.