Hey all! The mod me and BadBug are working on has a pretty big issue. Every time two of my objects get close together, BF starts locking up

I fixed the Collision meshes to both have the right Mat ID But it still happens
So I uploaded the Mod Here: sean.alyrica.net/Area51.zip
I was wondering if any of you guys could look it over and figure out what was happening??
I would be MUCH indebted to you
Thank's in Advance!!