I found that a good way to make characters interact with physics objects is to make a kinematic object slightly bigger (but not taller) than the character and continually position it at the character's position. The kinematic object then moves objects around your character for you.
Something like this:
make object box 102,11,39,11
phy make rigid body dynamic box 102
phy set rigid body kinematic 102,1
do
phy set rigid body kinematic position 102,object position x(player), object position y(player), object position z(player)
loop