Collision detection and clipping issues in AS3?

I expect your balls behave like this: When one ball lands on top of the other, that's actually lying on the ground, the other ball gets pushed down into the ground, then you react at it within updatePhysics() by placing it into the position where it originated, thus, those balls become one within another. One of the suggestions that could remedy this will be to hold last collided object for each of the balls for one cycle of physics, say like this.

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