RetroDevil: The cloth of the sleeves gets bunched up in the crooks of her elbows.
A few tips that might help:

• make sure that there are enough frames between zero pose and final pose. 30 should do the job.
• Don't "drape from zero pose", start with the figure in zero pose (all morphs at zero too) on frame 1, the final pose on frame 30 (plus morphs). Play the animation slowly, check for self-intersection of limbs. Set tye number of drape frames to zero.
• Set the collision depth and collision offset to low values, 0.2 each should do the trick
• Set the static friction to 0.2, the dynamic friction to 0.05.
  -  Check "object vertex against cloth polygon" and "object polygon against cloth polygon"
• Increase the number of steps per frame to 5

And if nothing helps, unckeck "Cloth self-collision).

Hope this helps.

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