  We present results of simulations for a dilute gas of inelastically colliding
particles. Collisions are modelled as a stochastic process, which on average
decreases the translational energy (cooling), but allows for fluctuations in
the transfer of energy to internal vibrations. We show that these fluctuations
are strong enough to suppress inelastic collapse. This allows us to study large
systems for long times in the truely inelastic regime. During the cooling stage
we observe complex cluster dynamics, as large clusters of particles form,
collide and merge or dissolve. Typical clusters are found to survive long
enough to establish local equilibrium within a cluster, but not among different
clusters. We extend the model to include net dissipation of energy by damping
of the internal vibrations. Inelatic collapse is avoided also in this case but
in contrast to the conservative system the translational energy decays
according to the mean field scaling law, E(t)\propto t^{-2}, for asymptotically
long times.
