It is possible to edit skins for this game! It was a painful process but possible nonetheless. First extract the skin to dds using Noesis, then edit the dds (must use BCS- Linear,DXT5), then I transferred the dds back into the original PTX file using a hex editor. Someone with more understanding could most likely automate the conversion process and really speed this up.
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I have also had a look at the physics and made a few changes to understand how to improve it. If I get something good I will share it.