Can anyone tell me why Dynamic Hair is failing in this "wig" mesh?

The hairpiece for my latest character refuses to respond properly to Dynamic Hair, no matter how I modify settings, weights, etc.

The two top meshes are tests created for troubleshooting. They are essentially exactly the same as the problem mesh except in the way the strands were created. The top one is unstyled, the middle one has some combing. They both use strands generated by the particle system settings. The problem wig uses strands placed by hand using the Add tool in Particle Mode, my usual process.

After translating the emitter, the test systems work fine, but the problem wig has obvious issues – all but the root keypoints are frozen in place. The only way to prevent this is to give all the keypoints weight 1.0 in Particle Mode, but that also prevents any Hair Dynamics from working.

The problem wig was made in an earlier 2.5x version, but was never used with Hair Dynamics at that point. It’s been restyle extensively for this particular character. This file was created in 2.61.

You can snag the test file at pasteall:
You’ll have to bake the particle systems, it’s set for Disk Cache

I really cannot figure this one out, been working at it most of the day, would appreciate any help getting it sussed. I really do not want to reconstruct this wig, as it is perfect as is in terms of shape, size, density,etc, it just won’t animate properly.