Maxwell Graf has just posted an update on the Mesh Deformer project site: Mesh Clothing Parametric Deformer Project.
Update on the mesh deformer project, 11/11/11:
Karl has begun working on the code and was contacted recently by LL in order to facilitate development of this feature. He will be working directly with LL from this point forward to supply them with code as the project moves forward, allowing them to check the feature with compatibility for the official LL releases as he progresses so that when it is done it can quickly and easily be included without weeks of additional testing. They contacted him directly to expedite the process and work together from the start of this, which means it will be working correctly and will make it a lot easier for TPV’s and other grids to implement once it is done!
This is great news and in addition to the comment Charlar made about further development with open source features is indicative of some serious new possibilities for development. Kudos to LL and Karl for being able to come to the table together for the good of the SL community. This is a best case scenario for this project, and indicates a strong willingness on LL’s part to adopt and implement this new feature that we have wanted since July.