Reminds me of "The incredible machine". I've been unable to find this game for years. Hopefully someone can tell me how to get it or point me to something similar.
This looks very similar to a Mac program (whose name I've long since forgotten) I used in college in the mid-1990's. It's good to see somebody is finally putting that CPU power to good use: once you got beyond 5-10 separate objects, a 68k couldn't even manage 1fps.
sadly, avast thinks it has a worm :( (tried downloading the exe file)
*edit: just downloaded the zip file and it works. im not sure how a kid could play with this though, i tried playig around with it and i couldn't even make a car.