I am aware that there is a considerable amount of interest in computational mechanics for simulation of cloth, hair and other elastica, particularly for animation films. The methods developed by groups in computational mechanics (that I am aware of) are typically far from real time.
My question is if there are any departments or people specialising in real time simulation of computational physics, with potential application to computer games, realtime virtual worlds, or educational tools? I am specifically interested in research groups in the University setting.