This guy, Bob Forward, is pretty experienced in the use of pyro for film special effects ( take a look at www.detonationfilms.com for some of his work, and he did that exploding leaf pile for the Capitol One credit card commercial also, btw - one with the Huns/Vandals who had had to find new jobs ? )
He had already milled Mg chips ( the stuff left over if you buy from Skylighter, who can only ship if 51% of the container is turnings/chips and not fine mesh powder ) into powder, and there was a light coating of Mg in his aluminum milling jar. He was dropping steel media balls one by one into the jar, getting ready to mill another batch. When he dropped the 4th steel ball, it went *foosh* and flashed, and basically toasted his hand.
The consensus on rec.pyrotechnics is that the flash fire that occured was ignited by *impact*, not sparking. A similar accident happened a while back to a *very* experienced professional pyro ( LLoyd Sponenburgh, who wrote the book "Ball Milling Theory and Practice " ).
My conclusion - treat Mg powder in a mill as if it were flash powder ! So now I have 250 grams or so of Magnesium scrap turnings, guess I'll toss em in the fire

Here is the link to Bob's photo's of the jar, and his hand.
Magnesium milling accident
Stay safe, and Stay Green !