Make sure you do a ResetEntity on the bullet entity copy after you move it to its initial position (the firing point of a gun, for example) but before the next UpdateWorld command. Otherwise it will be stopped by the first collision enabled entity it collides with.
Note that in your code above you shouldn't need to position your source entities at 0, 0, 0 as they will be created at this position.
Note that in your code above you shouldn't need to position your source entities at 0, 0, 0 as they will be created at this position.