i was kinda bored and playing the game hammerfight led me into wanting to make a physics based 2d cloth/banner wtv.
well id say that i succeeded. although the collisions need a bit of work because physics has no "point" based collision (feature request) the cloth just collides 6 pixels away from what its actually hitting (its a 13x13 circle)
the cap is made in 98.9 so im unsure how well it might work in newer versions. i bundled an exe just in case.
mouse controls the cloth "pin"
holding space shows the nodes and springs.
http://files.getdropbox.com/u/1010927/Cloth.zip
oh yah i went a lil overboard trying to make it bloom-ish with layer effects so you might wanna take those out if its slowing things down. i think it would look excelent for curtains blowing in from an open window during a sunburst afternoon, or a cape for some character, feel free to use it