How to make physics forces independent of frame rate?

Hi. I am struggling to understand how a variable physics time step can work for multiplayer (I am familiar with BulletPhysics which uses a fixed step). How would a racing game for example? If the frame rate determines the distance a car can move in a given time, as jmassey describes above, would the player with the lowest framerate win the race?

On a related note, does UE4 have client side prediction, because if the server has a low framerate, would the clients see players jerking?

Ori, you mention a fixed step would require “some modification of the sub-stepping code”, please could give us some pointers (function names) in the engine where this modification code be made? Do you foresee Epic providing an option in future to enable switching the engine to fixed step - I would imagine this would open up the engine to simulation applications?

Thanks

PS. I am using the engine (I love UE4 btw, great work) to create a physics based helicopter.