Poserfasion had some good tuts on making dynamic clothes.
Triangles if I remember correctly seemed to work better for the cloth room.

If poser fasion is still alive, check it out and see if the tips help.

However tearing as you described it may also be due to the dynamic settings in Poser. Its been quite some time sicne Ive used the cloth room so I cant remember which settigns can cause it. Crud I know thats no use to you. :-(

Maybe I can get some free time this weekend to check those settings.