I don't bother converting dynamic clothes.  I've used M3 cloth props on V4 and M4, and MANY V3 cloth props on V4.  I've used Jessica cloth props on a fully morphed V4 without trouble, too!  Just scale, drape in the cloth room and simulate.  As long as the cloth props are well-made, they shouldn't have trouble simulating.

Now, about hiding body parts . . .  My PPro 2010 won't simulate against hidden body parts.  I don't know if that's a function of this particular version, or what, but I've tried that to avoid poke-through and it doesn't work.