I couldn't make it in time for Y3K New Year's Eve, but it can be done, no problem. :)  The deep draping of the folds might take some work in anything but a top-end 3D package that has some good cloth-draping plugins and a user that knows how to use them right. :)

As far as "conforming figure" goes, sure, it can be done.  In fact, making it a conforming figure would be easier than just making the object itself.  The only downside is that some of the draping might get a bit squishy in extreme poses so some tweaking would have to be done on the conforming end, IMO.

PhilC has some excellent Vid Tutorials on creating conforming figures, IIRC.  Also, there are a lot of regular tutorials on it available just from a decent google search.

PS - I can't remember if it is Aery Soul or EvilInnocence that has a "Ribbon" freebie/product out there. (Dance Ribbon, the kind used in floor gymnastic dance.)  I don't have it, but if that conforms to the figure's body in any way, you could take a look at that first to see how it was done/looks.