It seems I’m still missing one important step or setting. When there is little to no movement on my character, the physics look fine. But as soon as I start walking around, it’s just going crazy. Even if I set the dampening to astronomical values, it’s still jumping around every frame until I stop moving. It’s hard to tell from the .gif because of the low frame rate, but believe me… it ain’t pretty.
When I turn substepping off, it’s just twisting and turning the whole time. Which, I imagine, is not what should be happening either.