Okay guys, you haven’t heard much from me in a while on the networking stuff and for good reason, I hadn’t spent a lot of time on it. :-p
The past few days I’ve gotten back to work on it and finally have a functional test with a client and server and it works GREAT! I will be cleaning up code the rest of this week and I am going to be writing a simple webstartable networked game that I will be launching along with the release of this source code, but for now let me leave you with this screenshot I took this evening after making it work:
You’ll also notice this says “jME-Physics Networking” instead of ODENetworking. I have completely redesigned the system to be explicitly run with jME-Physics. Further, I use the JGN project (http://javagamenetworking.dev.java.net) as the backbone of this API and it has a built-in feature to simulate lag. Even with a 1 second lag the game runs very smoothly. I still have concerns about feeling to the player in-game but the simple game I’ll be starting on this week will hopefully address that and give a good technology demonstration for the concept of physics synchronization over a network.
I wish I had more to give you at this point, but as I’ve received a lot of interest in this recently I wanted to make a post to let you know my hands are no longer idle on this and I’m making serious progress. 
darkfrog
I am anxious to do some tests with jME-Physics Networking, i am following your progress and it seems a great stuff. :D
Sounds great, darkfrog. Keep us updated!
Hey there.
I am very currious about this project.
How far are you and is it possible for us to test and play with
your implementation.
I think it will be great! 
Well, I have a tech demo release along with the first release of the source code for this. The tentative release of this is this weekend or early next week at the latest. The tech demo is called, "Roll-A-Rama" and is a multiplayer game that can be launched via webstart and you play as a ball rolling around in an arena trying to bump the other players off the side. I figured this would be a good proof of concept for a physics networking API. I will definitely be posting a message when this is launched.
Once this has been released I will be looking to get some assistance in re-working the whole project as this iteration was focused towards proof of a good concept and there is a lot of missing features I would like to implement, or implement better. For example, currently there is no distinction between objects that are close to the player and objects that are far away. Objects that are far away should automatically be adjusted to be updated at a lower priority and closer objects be updated more frequently. Each object currently has a priority of update and that system seems to be working well, but there are a lot of features I would like to add to this for efficiency. Anyone interested in helping please let me know as this project is quite a lot for one person to manage. Particularly when that person would much rather spend the majority of his time writing games instead. 
darkfrog
Hey man, I can't wait.
Also I would love to help, but all my time is currently consummed by my new "JOB"
and MonkeyWorld3D editor!
Great work on this tough…
Great work buddy! Can't wait to beat you in Roll-A-Rama
I'm afraid I can't help you very much on your API as I'm not that good on the networking stuff 