Thank you very much to the both of you.  I was able to successfully constrain the shorts to M4, and the cloth simulation works flawlessly in Poser Pro 2010.  Great tips from the both of you.

I ran into problems when using PoserFusion inside 3ds Max for this exact clothing simulation though.  This does not perform the same as when inside Poser Pro 2010.  Inside 3ds Max with PoserFusion, the shorts are not visible for the first 21 frames.  Then on Frame 22, it looks like the shorts become visible but are scrunched up and partly inside the body of M4.  As the frames progress toward the final frame of 30, the shorts become less scrunched, until they are not scrunched at all at frame 30, and the shorts are offset from M4's body by a few inches.  Not sure what to make of this as things are working perfectly inside Poser Pro 2010.

I was able to get other clothing items to simluate proplerly inside 3ds Max/PoserFusion plugin, so not sure why this isn't working.

I should note that I am using 3ds Max 2010 and the PoserFusion SR 1.2.  The shorts are from a Daz Dynamic Clothing item, which I exported as an obj, and then loaded into Poser to create a dynamic poser clothing prop.

Any ideas as to what the problem may be or why PoserFusion is not working the same as Poser Pro?

Best