Actually the cloth-size seems to be restricted to something like 11x11 units! (I'm not sure about that, but others told that they tried to make it bigger and they had no success! BUT this should be fixed in the next update, hopefully!)
As long as you are not useing more than 100 objects at once in softwaremode, it should perform well for gravity etc.! Also the possibilities will grow (slowly) with the AGEIA-SDK, which is the base of DP! Hopefully with the next update you could get effects like "deformable objects" and fluids in softwaremode, if TGC convert the AGEIA-SDK completely!
For collisions you should have a look at sparkys collision DLL:
It's free, easy to use and very handy! (In the game in my sig, I used DP and sparkys collision-DLL!)
AMD 64X2 4800+ (939); 2GB; GF 6800LE (@12PS, 6VS; 380 MHz, RAM: 434 MHz)
DP-Sw-Mode-Comp-Entry (updated to V. 1.2):