Have you tried a simple setup… like a piece your cloth and a moving sphere? I will try your your setup when I get home, but I cannot download the file.
I have the same problem as you do, but when I add the armature to the cloth it work fine but no dynamic. I have problem trying to bake it, because the blender just stop responding. I thnk the model I use have too many polygons, so I would like to try your blend file.
The parenting relationship doesn’t follow through on a Cloth modified mesh unless you use the “Pinning of Cloth” (… oddly long for a button name …) option . You need to create a vertex group and use pinning to get the cloth to follow the cube as expected .
You don’t need to use the pinning option if you don’t want the cloth to cover the cube during the entire animation, but you still need to create a vertex group .
Pinning will keep the cloth mesh pinned in 3D space as you start the simulation, so it is a good idea to place the cloth to where it is almost touching the cube when the simulation starts to get good results .
Did you Alt-A to run the simulation and build a cache to bake from ? If you did I have no clear idea what the problem is . You might want to post a blend if you can’t solve the problem .
It’s a simulation … sometimes it will look right … sometimes not . Just try and tweak some of the settings, change the path, etc. … just clear the cache between the changes until you get the results you want . You can edit from certain frames with cloth so eventually you might get the result you want .
Btw, please find another file hoster … Rapidshare’s downloading process is more then a bit annoying … http://uploader.polorix.net/ is a good free host and the owner is a Blenderhead too .