A project I’m currently involved in inspired me to completely rewrite my old Curtain class into something more stable and versatile. Using a character physics method based on Verlet integration, and adding some properties for friction and gravity, it resulted in a 2D cloth simulation (at least after some updates I just did since I needed to get away from work for a bit). The curtain itself is drawn using the new drawTriangles API for Flash Player 10.
Anyone interested in Verlet integration (or scripted animation in general) should check out Keith Peters‘ book AdvancED ActionScript 3.0 Animation.
On to the demo! Right-click to view source. Not commented due to lack of time, but it shouldn’t be too hard to figure out :)