The method you are using should work. I would need more details to find out why you are having problems with more complex stuff. One problem may be that joints can only be one level deep in a group.

Post a model with a problem and Ill take a look.

I found out that there is a setting (as seen in the SketchyPhysics Inspector) for "ConnectedCollide" which is disabled by default. This setting must be checked for hinged objects to undergo full collision checking.

Not really. Its all or nothing.

Drape would be a different tool. You could technically do it with a bunch of ball joints. But I don't think it would work very well. It would be unstable and slow.

-Next version will have better control of joint start position.
-The physics engine doesn't support non static meshes. Nothing I can really do about that.
-Magnets will be in next release. And yes you can turn on or off and reverse.