To transfer movement of the skeleton's world coordinates to physics, use Skeleton physicsTranslate. You probably don't need physicsRotate. Rotation in physics will still occur since the update rate is rapid.
I can't tell if your physicsTranslate math is correct. It should be the distance in world coordinates the skeleton was moved. If it's wrong the physics movement can be jerky. You can probably remove the call to physicsRotate.
While some parts of physics use the application update rate, some physics calculations run at the frame rate specified in the editor for the constraint, regardless of the application's update rate. Make sure you don't updateWorldTransform with Physics.update multiple times per frame. Only use it for the final updateWorldTransform, as it advances the physics constraint state.
