Over the last 10 to 12 days, I've spent most of my "Poser time" examining, and experimenting with dynamic cloth; here are some of my perceptions.
1.) The Poser 5 Manual was only useful for explainations of what the settings do.
2.) There are several very good tutorials available online about the subject. (Some even go so far as to suggest reading about dynamic cloth in applications other than Poser.)
3.) A particular technique that will work for one cloth item, may not work well, or at all for another. I found myself often using a combination of tips from various tutorials, to get the desired result.
4.) In the "Clothroom", is possible to have open many of the same "palettes" as in the "Poseroom". This saves much time (...and some confusion...) over switching between the two. I don't recall any tutorial stating this fact.
5.) If a cloth item behaves unexpectedly after trying a chosen technique, look to see it's grouping. I found that some creators made choices in "constrained", or "cheoreographed" grouping that was preventing me from achieving the desired results. This is especially true when using clothing on a figure it was not created for.
6.) The quality of the item's modelling, greatly effects it's ability to "flow" naturally.
7.) Sometimes, a small change in a setting (Fold resistance, cloth density, drape frames, ...) will cause very different results. Keep track of your changes; that way if it doesn't work well, it is easily undone.
That pretty much sums up my current observations. I will certainly do more experimentation; and I will post any additional obseravtions as they occur.
I have attached a text file with links to some of the online tutorials that I found during my experimentations. I somehow missplaced the links to some others; so if you'd like more info, feel free to PM me here about them.