Ninja Rope

I would also like to achieve this affect. In 3D, would it be possible to locate the area of the rope that collided with the terrain, and somehow adjust mesh at that point so it "wraps" around the terrain?

I know it's a bad picture, but to give you an idea:


Also, I don't know if a mesh deformation like this would mess up the texturing of the rope or not.

Any advice much appreciated.