Im wondering this physic system has some issues, there an example and a .capx you can see them:
demo
.capx
Bump
If you aren't sure how to fix, it may be considered as bug, let me know.
Looks like the physics object rotates about the centre rather than the origin point. I wonder is there a way to change it. Bit of a hack but I just made the sprite image twice the size with the top half transparent:
<img src="http://dl.dropbox.com/u/8367729/construct/example/sprite.png" border="0">
http://dl.dropbox.com/u/8367729/construct/example/physicsSine.capx
*edit*BTW the hinge breaks because you've set the revolute joint's upper and lower angle to 0.
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I didn't know it can be fixed, but nice hack!
I tried to fix that like 30 times, i couldn't it anymore, i tought it was bug... but it's working you fixed that. Thanks!