I had an interesting experience draping cloth over a mesh. The mesh was a biped, x axis mirrored. The mesh was given the Collision attribute, however... the cloth draped correctly over the "master" side of the mirrored mesh, but fell right through the other (mirrored) side. In the end I had to Apply the Mirror modifier to get the cloth to drape properly, but this seemed to mess up the rigify armature and handles for the biped, so I was rather discouraged. Is there a Right Way to create a biped with rigify and put clothing on it without losing the pose capability? really weird and bad things happened when I tried to pose it after Applying the Mirror mod :-)
I'm getting the hang of (primitive) clothing but am a long ways yet from being able to clothe an animated biped, even in a simple cloak.