I can answer some of my own question, since asking I've been playing around... I pulled over the model (pz3file) and then converted it by opening it in the vertex room. There I could add clothing, make more morphs, etc. But I think one trick is to remove the skeleton when adding morphs... I only say this after having some crash/ freeze issues after trying to add morphs to a boned model. I still want to know other's ideas on how they attack this issue.

Never Give Up!