No, I can't get Collision Detection to work satisfactorily. I get the same result as you. I've tried tweaking dials; different result, same look. Longer hair with no kinks seems to work better, but the collision distance seems large in some cases (hair floats an inch or so above skin). The dynamics seem to work well as long as you don't use collision; it's when collision is thrown in that things get freaky. Probably the way it's calculated, seems to be from the root down. Hair "piles up" on the shoulders when it should flow down to the front or back. I've had some experience with the "Shave&aHaircut" package, and the use of IK chains in the hair, and the look is much more natural.