this is a cross referencing post from a 3D noob,
piling up the help in the, hopefully, most helpful order.
in the first post, download the zipped file "Exercise 18: Waving the Flag (Cloth Simulation)" and do
the exercise. this is to get your feet wet& confidence up, it's real quick and easy to do.
Tech Talk Series
in the first post, download "Tech Talk: "Cloth" - Bob Croucher 307 Megabytes!"
yes it's massive, takes forever to download and this is the one you need. really.
never mind taking notes, just watch it till you understand what cloth does.
next, illustrations of basic cloth motion principles, a breeze to browse:
and before you get going download HomeSlice Simcloth tut and at least read it through.
easier to reference than a film, all concepts explained.
now you're good to go!
EDIT: no you're not - read post #7, then consider yourself initiated!
robcat's sock puppet (i was going to 2D draw my cloth till i saw that!)
Tinkering Gnome's Workshop search for *cloth*. dresscode: beyond belief.