Simulate Soft Bodies Dynamics using X-Particles with this tutorial.
Find more tutorials like this at http://bit.ly/tutxp
There is a work file that can be downloaded at http://bit.ly/tutxp01

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Project
-X-Particles
Subframe Steps = 5
Iterations = 10

Plane / Insert xpDerformer / Apply (xpEmitter)

Sphere
Type (Icosahedron)
-xpCollider Tag

xpEmitter
-Object
Emitter shape (Object)
Object (Plane)
Emit From (Points)
One Particle Per Source Element (check)
– Emission
Emission Mode (Shot)
Speed = 0cm
Radius = 2.5cm
– Display
Editor Display (Circle Filled)

xpEmitter
-Object
Emitter shape (Object)
Object (Sphere)
Emit From (Points)
One Particle Per Source Element (check)
– Emission
Emission Mode (Shot)
Speed = 0cm
Radius = 2.5cm

xpGravity

Dynamics objects / xpConstrains
– Connections / Birth
Connect at Birth (check)
Stiffness = 85%
Connection Limit = 8

Modifiers / xpFreeze
– Falloff
Shape (Cylinder)
Orientation (+Z)
Size = 15cm x 15cm x 200cm
Falloff = 0%

X-Particles Material
-Color
Mode (Random (from Gradient))
Color Gradient / Load Preset (Flame 2)
-Illumination
Mode / Neon
Width = 50

X-Particles Material.1
-Color
Mode (Random (from Gradient))
Color Gradient / Load Preset (Ski 1)
-Illumination
Mode / Neon
Width = 50