OK listen up kiddies,here it goes:

First you ZERO your figure.Also zero all morphs.
Then import the dresscloth.Parent it to HIP.
Make sure there are NO intersecting geometry.
All this in frame 1.
Jump to last frame and make keyframe.Very important!
Pose and morph the figure to your liking,in the last frame.
Go to Clothroom and set up the simulation.
No need for draping,so skip that.
Step to last frame and scale the cloth to about 80%.
Hit Calculate and WATCH.
It should work like a dream.
That's it folks.