Ha ha, ok I think I need to be treated more like a noob.
I created a curve and made it soft.
Extruded a circle with the curve.
Selected the phone, charm and circle extrusion (ie string) and made them Passive Rigid bodies.
Parented the charm to the string and that to the phone.
Added gravity to the string and charm.
I then trided to move the phone around (set keys) and all the parts became detatched during playback. Nothin acted soft or anything.
SO I might need a little more step by step. hehe. Should I freeze and delete history at any point? And I think maybe I misunderstood how to actually attatch them together. As you see I parented them.
I hope I'm not being a total bother. Any more help would be great. I really wish I could understand the dynamics system in Maya since it's so powerful.