I ran into the same problem. Though wall friction seems to fix it.
-Gandolf
Edit: I also have a magnificent idea that should allow you to place any object into the field and have the ball bounce off of it like in reality. This modifaction will make game development of side scrollers, arcade games, and any other games super easy. People will just have to set the gravity, air friction, wall friction, and initial speed than place his/her objects in the field and Voila! The game is finished. Than they can go furhtur by adding a npc or changing the values on the arrow keys for jumping, ducking and what not.