@John: The real problem is that there aren't any proper joints, so legs just don't work very well. Also the program seems to have problems learning how to use a limb properly.
Pretty nice. I agree with uethello in that it needs a zoom key and possibly a map. It definetly has great potential, hope you can solve the glitches. :)
@Wolfmater: Haemoglobin uses iron as it's oxygen carrier, so you could think of it that way. Luckily, blood is not actually magnetic in real life, otherwise your blood would be attempting to burst out of your skin if you use a strong magnetic field. The only real conclusion is that it's just the way the physics work in this game since there are objects which might not be ferromagnetic that are attracted by the magnet.