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Havok is an Xtra that provides realtime interactive physics. Check it out for the latest release. The site also contains a lot of information and examples.
The application exports both to VRML and W3D. As an added bonus you get a 3D file browser. It isn't free though.
OBJ to W3D
A converter from OBJ to Shockwave3D by Macromedia
Director 8.5 Shockwave 3D studio
Macromedia has incorporated 3D into director and shockwave. With a large user base this will push 3D on the Web for sure.
The 3DPI is an additional Property Inspector for 3D cast members in Director 8.5. It is a crossplatform dcr-Xtra for the Director authoring environment, which offers a quick overview of all objects within a shockwave3D world, and gives access to examine and modify nearly all its properties in realtime, including Havok physics properties. The 3DPI can also output the Lingo code for each property and 3D function.