Attached Link: Dynamic Cloth Hair by Joe Bushido

You aren't the first person to think along these lines. However the product I've linked to is no longer on sale; whether that's due to some flaw, or another reason, I can't say. I personally couldn't get results as good as those illustrated, but I'm quite willing to admit that may have been due to lack of persistence on my part. :)

Anyway, I look forward to trying your freebie, and thanks very much for making it available.

One issue I found when doing experiments myself is that collision against the ears is a particular problem, presumably because of the increased mesh density in that area. One solution is to use an 'ear proxy' which is just a low-poly prop (the capsule would be ideal, for those who have Poser 8 or later) positioned to cover the ears.

Or you could go the whole hog and use a head-and-shoulders proxy such as the one included in Kirwyn's V4 Hair Proxy (available here: http://www.morphography.uk.vu/dlkirwyn.html). It works well with dynamic hair, but might be advantageous with dynamic cloth hair too.

Let's pool our experiences and see how far we can get!