I posted the following on the Card Kingdom development blog.
Two features of Havok Physics that we will be using for this game are the character controller and phantom collisions. The character controller is used, as the name suggests, to control a physical body as user controlled object. It handles the various states a character can be in: on the group, wanting to jump, in the air, climbing a ladder, flying, etc. It also supports custom states as well, so crouching, swimming, any state that the physical representation of the body needs act differently in, it handles.