1. the conforming group is Choreographed.

That means that the verts of it follow their own (Poser) procedures according to animation.

Constrained = the verts follow the object they're constrained to in its animation

Decorated = the verts are constrained to the cloth instead and hence follow the cloth sim result

2. as I understand, the dress is a single mesh with various groupings. One kind of grouping is ment for posing/conforming/bone-driven morphing/animation, the other kind of grouping makes material zones. Although Fugazzi refers to the first kind, you also can use the second kind to define the dynamic group. And, if the skirt consists of various materials  with different dynamic properties, you can define a dynamic group for every kind of material. So a lether-and-lace dress not only can look like that, but can behave like that as well.

so: first put the entire dress into Choreographed, then pick the areas you want to have the same dynamic behaviour into the same dynamic group.

have fun.

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Usually I'm wrong. But to be effective and efficient, I don't need to be correct or accurate.

visit www.aRtBeeWeb.nl (works) or Missing Manuals (tutorials & reviews) - both need an update though