Destructible terrain

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SpaceAce

I vaguely remember someone posting a project or code snippet involving randomly generated destructible terrain. I am interested in learning techniques for implementing this, similar to games like Scorched Earth and Worms.

Is it possible to work this with a sprite engine, like sswift's? Can I use sprite physics and just re-capture images of the terrain, or is that a bad idea? This is new territory for me.

Thanks,
SpaceAce