Ok, so good news...Updated the project a little bit.  Bad news...There's still input issues that I'm unable to resolve.  If this was a polling language it would be easier, but since it's not a polling language, it's a bit more frustrating, and more difficult to find a workaround or something of a similar nature.

In the project, I've added a grenade object, which breaks into multiple shrapnel bits.  These bits have a random frame to choose from when created, and it works very well.  Whenever the shrapnel hits a wall, or the player now, it will stick to the object.  One of the awesome things with Torque is the mount feature, which mounts one object onto another and makes it follow the other object, so when the player gets hit with shrapnel, it essentially mounts to the player, and follows him around for a little while, then it's deleted.  I also want to get the explosion created as well, which some day or another, I'll get a decent explosion animation.  I'm still on the fence about XNA, because I really want to have some 2D physics in this game, and right now Torque is just showing off...>.>

The physics in Torque still need some fine tuning though, it's rather difficult to get correct for me, because it's a bit confusing for me right now.  I understand how they all work, I just don't understand why there's absolutely no friction, even though it's set to a value of 3000 on both objects that are moving.  @_@  So confusing...

On a side note, I also set up a wall class, which was initially required for the shrapnel, but now it's a bit obsolete, since it sticks to everything now...I also need to use that to set up the jumping to not allow constant jumping.  It would essentially use the collision callback to check if it's colliding with a wall on the players feet...that's going to be interesting.  Thankfully, torque has the points where the collision is occurring, I'll take a look into how to check which points they are, or where they are, etc...and see if i can find a good way to verify that the player is on the ground.  I could also use that moment to set the constant Y force to 0...and then when you jump set it to gravity.  :-)  Less work on the system, at least I think...we shall see how it works out.

Anyway, gotta go, sorry for the long post, but I hope I can get some insights from anyone that's reading this. Thanks!