How do I bake physics? (For animation purposes)

The following was posted with regard to the new Blender release

Blender 2.40 alpha-2 testbuild

“- Game engine has new stable physics, including option to ‘bake’ it for animation purposes”

Source: http://www.blender3d.org/cms/Newsitem.607+M502350ac1be.0.html

Could someone please tell me how I can bake the physics reaction.

set up the simulation you want, then in the game menu up the top, find the “record game physics to IPO” option, turn it on then run the simulation §

Thanks, Kane.