Bounce, Tumble and Splash by Tony Mullen is another must have Blender book if you want to explore the physics simulation aspects in Blender, such as cloth, I have both his books and highly recommend them. I found Bounce, Tumble and Splash at Books-a-Million of all places.

If you want to learn more about dynamic cloth creation you'll find information on Maya's nCloth invaluable. The theory and processes are viable regardless of software package so it's just a matter of knowing where the comparable tools are located in Blender.