These steps are for using dynamic clothing on Genesis. They could be adapted to V4, M4, Genesis 2 Female, and other figures.
1) Load your human figure into the scene.
2) By default the human figure will be in the default position with the basic shape, unmorphed.
3) We're going to make a simple animation to cross the gap between what the figure's default shape is and your particular use of the figure. We'll be using the 'Timeline Pane' for a lot of this. These steps apply to most any figure, whether it is V4 or Genesis. Judging from your order, I will assume you are using Genesis.
4) At this time, do *not* pose or add elective morphs to the human figure. Do not load the dynamic clothing. The name of the human figure should be selected in the Scene Pane. This tells Studio that it is the focus of interest. The key frames we are about to make will be applied to the human figure.
At this point, you can either have the figure (presumably Genesis) with the V4 morph applied or without. Ideally, you want the V4 morph applied because this is the shape that the Dynamic Fantasy Robe was originally made for was Victoria 4. If you are using Genesis and you want to apply the Victoria 4 morph, this is the time to do it. This is the product that gives Genesis the ability to morph into V4 (http://www.daz3d.com/v4-and-m4-shapes-for-genesis). Don't worry. If you intended to use a different shape on Genesis, we'll deal with that in a few steps.
5) Go to the Timeline Pane (WINDOW --> Panes --> Timeline). Change the timeline pane to 'Advanced View.' To do this, click the 'Active Pane Options' button in the top right (or left) of the pane and choose 'Advanced View.' The timeline arrow by default should be at the beginning on the left side. Now find the key frame button. It is on the bottom right of the Timeline pane and the icon looks like a key with a plus (+) sign in it. Click this button. You just made a key frame for the default position of the figure and the default morphs. You need to do this because the robe will load by default into this position. This is the start of the animation. Each key frame will gently bring the robe into alignment with your intended pose and morphing.
6) Now, load the dynamic robe (or whatever outfit you are using) into the scene. Since the human figure is in the t-pose, unmorphed, in the default central location in the scene, the robe will load right onto it. If you've applied the V4 morph (or you're using the actual V4 figure), the figure should be perfect.
The dynamic robe does not 'fit to' figures. If you are using dynamic clothing that does 'fit to' and you are using it on the figure for which it was made, then use the 'Fit to' option. If you are using dynamic clothing on Genesis that was originally intended for Victoria 4 or Michael 4, do not use 'fit to' option, even if it is available. The rigging is different between these figures and will mess up the process.
You can apply the texture to the figure now. It's not going to be animated and has no bearing on the draping or the fit of the clothes. Don't apply the morph or pose quite yet!
7) Advance the timeline to 20 or 30. If you're not sure, choose 30. The more frames, the more stages for the conversion and transition and the more likely you'll get a good fit for the dynamic clothing.
Apply the morphs to the figure that you wish to use. If you applied V4 morph earlier, but don't want that, then reduce it from 1 to 0. Apply the pose that you want to use. If the clothing doesn't follow at all or doesn't follow perfectly, don't worry.
With the human figure selected, make another key frame. This is the 'end' of the animation. You can now move the slider back and forth and see the figure change from one end to the other.
8) Make sure the slider is at the very beginning of the animation. We're now going to drape the dynamic clothing over an animation. Go to the Dynamic Clothing Pane. (Window --> Panes --> Dynamic Clothing). Make sure the bullet is on 'Animated.' Press 'Drape.' Wait. During this time the dynamic plugin is calculating the dynamic clothing on the figure for each frame between 0 and the end of the animation.
9) When the animation is done, you can do a render.