I've just added to the clothes documentation a section on using custom vertex groups to eliminate the distortions that often occur when clothes are put on a model shaped differently than the target used to create them in MakeClothes. The text in question is adapted from an earlier forum post of mine. Looks like it's not showing up yet, but it should show up here:
http://www.makehumancommunity.org/wiki/ ... akeClothes