Cloth simulating with newton and irrlicht
Cal3D has some basic support for cloth and hair effects. In my Irrlicht project, I'm using Cal3D models I exported from Blender with good results. I haven't messed with the hair/cloth stuff myself, but the demo models look good. The only caveat is that it doesn't seem to do any collision handling for the cloth, so if you don't do your animations right, the cloth will penetrate the character.