SimonWM first of all many thanks for your quick response.
To answer your question yes I did have Genesis selected and through Smart Content/Wardrobe I selected Mystic Cape V5 Supermodel.
After 3 single frame drapes it was much better but still went through her armpits.
To recheck i just did it again and If I load Mystery Cape M5 Hero (open) it rests much better on her (but I need the other one)
Here is a mix of screen shots (with no drape done).
Hmmmm BTW is there a way to get rid of the high collar on Mystery Cape M5 Hero?
Click thumbnail to see full-size image