Settings for a soft body shirt simulation in blender

I finally got something to work nicely with a MakeHuman character.
First I made a mesh in a shape to fit over the head of my character.

Key points here are for your "clothing" mesh to have a lot of mesh vertices over any feature on your character that itself has a lot of mesh vertices. If your "clothing" has too few, body parts will stick through it.
Another key point is in careful choosing of the Deflection settings on the character. For a long time I noted that the clothing mesh was flying off the character. That "Outside" setting should be a very small number-- setting it too high does not yield a realistic setting.
Also, this shouldn't take too long. If you find that the Bake takes more than say 5 or 10 seconds per frame, my guess is you've got a problem. A Bake for a mesh that is going to look good can take less than five seconds per frame if you've chosen good settings.

See the two images below for settings that worked for me in this instance.