From the picture, you have collision violations all over the place. Look around the waist area. See how the top interpenetrates the skirt? =ANY= geometry that violates the collision detection by penetrating the object being clothified will cause the simulation to freeze at that point. Another possible cause is that you are only using 5 frames to morph the character into a different shape. It is very possible for the charcter to be enlarged or changed fast enough between frames for the body geometry to 'pass' the cloth; instant freeze in the simulation. Try draping the cloth items for 15 frames, then using the default 30 frames to morph the figure. Move the time slider to frame 10, press the + button to add a keyframe, then move it to frame 30 and apply the final morph. By doing this, the morphing will start at frame 10, which gives 20 frames for things to move, slowing down the rate of change.