I've made changes to V3 catsuit cr2 by replacing "Figure 1" and ":1" to "Figure 2" and ":2" except for JCM's. It now works fine without any usual pokethroughs when I apply a pose in my Poser6.

My question is, why can't I get this same effect when I create a new clothing out of the catusuit (i.e. cutting off the sleeves or legs by using grouping) and applying the above method? I used setup room and applied either the modified catsuit figure or the original figure to the newly created prop. However, either case, I get the same poke through that I get with the original catsuit figure.

Any ideas as to why I can't get this to work?

I don't think the setup room will copy all the features of your imported character (I don't use it, myself). In other words, your hard work on the catsuit CR2 won't be carried over to your derivative clothing. If you look at the two CR2s side by side in an editor, you'll probably see this - and it should be fairly easy (if tedious) to copy the missing parts back in.

When I look at the new Cr2 created by the setup room, it replaced back all my changes back to different designation, like changing the figure number to whatever the order the figure was loaded into the scene.

So I went ahead and changed those back again but it doesn't work like it should. There are many other things setup room changed from the original Cr2 besides the once I made so I guess the using the setup room wasn't the right way.

My approach would probably be to edit the existing CR2 to point to the modified mesh - along with any necessary changes to materials, morph targets etc. At least you know what you're going to get that way.