Here are the settings needed from Marvelous Designer:
Step One: Export from MD4
Wavefront Object: Xinvert; Yup; Z;
MDD: Xinvert; Yup; Z;
This will give the garment the proper orientation in Blender, any version from 2.4 to 2.7.
Step Two: Import to Blender 2.4x (note this step might not be necessary, but it works consistently for me)
Frame Rate: 30fps for both apps
(MD4 doesn't say anywhere on its interface what its frame rate is, I had to google this)
Import Wavefront Object
Import MDD as Mesh RVKS
Next, the object must be mirrored, as X local (Blender 2.4x)
(Test by running the animation)
Step Three: Upgrade to Blender 2.71
Save in Blender 2.4x; open in Blender 2.63a; save in Blender 2.63a
(why? because 2.63a has the Open Collada code, which allows you to reinsert your MD4 avatar)
The file can now be opened in Blender 2.71, and it works!
Or at least, good enough that only minor tweaks to the shape keys or poses are necessary.
The high points in review: 30 fps for both apps; Xinvert, YUp, Z; Mirror X locally (you can do this in 2.71 globally); save in 2.63a for Open Collada.
and here is the proof: http://www.geekopolis.ca/blender/completed_models/ginaWushuKungFu1_271.blend
Let's make this more interesting an add a cape:
