A low-poly (subsurfable) physics chain. Set up for real time Blender Game use. Links fit inside each other like a real chain. Works very well, but physics sub-steps have to be set high (5 preferably) for it to work. I have noted this in the file. I have set it up this way, but if you import it, check your world panel in game mode.
Completely expandable. Simply copy the system, which I've explained.
Images are all real-time.
I have absolutely no idea if this will work as an animated, non-real time system. I suppose you could bake physics. This is set up for real time use.
Includes a simple rusty metal material with tileable diffuse and normal maps, 512 px square each. Easily modified if you like.
Please note: You need a fairly good computer for this. It isn't super heavy, performance wise, but just be warned in-game physics can eat frame rates. This isn't graphics card intensive - it uses your processor, I believe. If it eats your frame rate, try lowering the physics substeps until it breaks.