The object is no where near the collision sphere so the object collides with nothing. Can I move the object into the sphere and how?
You probably got your center off. In object mode, press the center button in the modeling buttons menu.
this is a very usefull feature to alow you to move the colition sphere to best suit your needs.
the objects centre is the location around which your collition sphere will draw. in object mode, on the mest tools panel there are there buttons to move the objects centre.
either : new Centre
or : Center to cursor should do what you nead
Thanks for the help. It works perfectly now!