Skill Level: Advanced.

Not only can objects deform with Soft Body Dynamics, they can also bounce into things and deform as a result, based on your settings.

Here's how:

1) Load  Whole_Object.lwo and Container.lwo from the Tutorial_General folder then position the ball to be a couple of meters above the container.  Turn on MetaNURBs for the ball.

2) Set the Draw Mode of the container to Edges so it will be easier to see what the ball is doing when it falls in.

3) Select Whole_Object, then Setup-->Effects, select Soft_Body_Dynamics from the pulldown list and apply it.

4) Select Soft_Body_Dynamics in the Item List and the Soft Body Dynamics block will appear.  Here's what I set the parameters to (these are just settings that I thought looked good).  Try some different settings once you're finished setting up the scene and see what how the different parameters will affect the ball.

Note:  In my scene I animated the ball for frames (1-30), that's why the Start Time here is set to 30.0.

5) On the Collision Objects block, select Container in the Pick list and add it.  It will now appear in the Collision list.

6) Press play.  You should see the ball fall into the container and get crushed from its own weight.  If the container wasn't there, it would just fall forever.

Play.  Have fun.  Enjoy!  There's a completed scene called EffectTypes_SoftBody_Advanced_Collision_1.fxs in the Scenes\Tutorials folder.

Additional information:
General Info - Soft Body Dynamics     Animate - Soft Body Dynamics block     Animate - Collision Objects