Apologies for reviving a dead thread, but I wanted to thank everyone who took time to try to help me again. I've tried so many techniques and nothing is working for animated sequences.

AVANZ, thanks for the "spawn morph" suggestion ... that is indeed working for single-frame dynamics, so I truly appreciate the advice.

Quote - It has not worked on a MAC for a long, long time....
E-on blames Poser, but if I import the same scene in an older version of Vue6 it still works!

Indeed it used to work for me but with the most recent/final update, it stopped again. Having looked around I see I'm not the only one who experienced the loss of functionality with the update.

Time to upgrade to 7 like everyone else I guess.  :-)  In the meantime, no dynamic cloth animations for me, only stills, but I can live with that.