Documentation always lags the code checkin, so bear with us 
To clarify, physics.setTimeStep( -1 ) and physics.setTimeStep( 1 / fps) are equivalent. Both give you the same behavior you get by default: the physics simulation timestep is the same as the desired frame interval.
physics.setTimeStep( dt ) for positive values of ‘dt’ set the timestep in seconds (not milliseconds). Generally, this should be <= 1/fps (e.g. less than/equal to 1/30 or 1/60).
physics.setTimeStep( 0 ) gives you as close to a time-based (as opposed to frame-based) simulation as you can get. However, you’ll still get skipped frames, if the time it takes to run the simulation takes too long, so it won’t make any fundamental issues with your app go away if you already have those 
Also, note that the time precision is not guaranteed, meaning it will simulate to the nearest multiple of the desired frame interval (e.g. nearest 1/30 sec for 30fps). This corresponds to the next to last algorithm in (i.e. the code snippet right *before* the “The final touch” section): http://gafferongames.com/game-physics/fix-your-timestep/ [import]uid: 26 topic_id: 19966 reply_id: 78110[/import]