I've uploaded a little example in the uploads, you're right though, the physics objects DO slow down properly with timescaling
But what i'm doing is speeding the player up the same ratio that timescaling slows everything down, making the player appear to be moving normal speed when if fact they're going really fast.
Basically it's like:
Left is down -- Set PLayer.X to .X + ((200 * timedelta) * (1 / timescale))
The (1 / timescale) makes it so if the timescale is, for example, 0.5, meaning half speed, the player moves at 2 times faster than he normally would, making it look like normal speed but only on the player, everything else affected by timedelta will slow down.
Anyway, the problem is, if i'm using physics values to do such a thing, the physics objects behaves differently to what the object would if i just made a custom movement for it, i THINK it's because the physics values aren't in pixels per second, but it could be some other factors too
A similar problem happens with my super speed example, if motion blur is on, holding forward whilst slowing time down, makes the player jump around a bit, and if you're making him go like, 1000000 times faster, it's er quite interesting