Another interesting research paper was published by Dr. Matthias Müller-Fischer, PhysX SDK Research Lead in NVIDIA.
It is called Adding Physics to Animated Characters with Oriented Particles and it further expands oriented particles approach with techniques for simulation of clothing on animated characters.
We present a method to enhance the realism of animated characters by adding physically based secondary motion to deformable parts such as cloth, skin or hair. To this end, we extend the oriented particles approach to incorporate animation information. In addition, we introduce techniques to increase the stability of the original method in order to make it suitable for the fast and sudden motions that typically occur in computer games. We also propose a method for the semi-automatic creation of particle representations from arbitrary visual meshes. This way, our technique allows us to simulate complex geometry such as hair, thick cloth with ornaments and multi-layered clothing, all interacting with each other and the animated character.