Hey again @MeadowD!
So as far as your object merging with the ground:
Here is where you’re getting the location of where the block will be set. The thing is, when you set the block to that location, the center of the block will go there… But that’s the floor surface, so it will be set down into the ground by exactly half of the block’s size (no matter how big the block is).
One way to get around this is to make the block’s “Center” be at the bottom of the sprite/object, you would just move the static mesh upwards in the Z axis to do this, within the block actor.
Have you tried not simulating physics, but making it affected by gravity?
Also the block static mesh has to have collision. If you have not given it collision and there are physics or gravity, it will fall through the floor. Give the box actor a Box Collider component and size it to the size of the block and that will stop 