I would simulate with the hands one or two inches away from the clothing item and after finishing the simulation, readjust the hand positions to get rid of that poke trough you are having. Also fixing the poke trough before simulating most of the time makes the need of using smoothing adjustment obsolete. As you know that also causes poke trough if the object gets between two polygons. Otherwise nicely done. I don't know what you have used to combine images to make the videos but if I may, I would like to suggest MagixVegas(Formerly known as sony vegas) to handle your video creation needs. You can do some adjustments to smoothen frame transitions to achieve a more flowy/soft animation. Would love to see your progress though. o/