Bounce problem when Bounciness is 0

Im in the process of making an 'angry birds' type game.

...but I'm getting a problem with the blocks, ground and the ball. When I shoot the ball it successfully knocks over the block but when the block and ball make contact with the ground they bounce uncontrollably and higher with each contact with the ground.

I've set all the settings in 'Physics - Bounciness' to 0 on Ball, Block and Ground, but it doesn't help.

Please Help!?

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