I don't know squat (why I'm asking people who do know squat) but! is using a physics engine like havok plausible for capes. You know so they wave all nice and fancy? Or are there some conflicting ideals- i.e. Terms of Services', money, some sort of copyright ordeal. I really, LOVE wavy cloth.

Edit:
For those with troubles ---> http://www.havok.com/products/cloth

Havok Cloth is not part of the Skyrim engine. Adding it is probably impossible without altering Skyrim.exe.

Thank you good sir!