I'm thinking there might not be a great deal of cloth movement, at least not in the clothing. Banners and such, yeah almost definately.
There's a screenshot in the mag of the character hunting a stag (pg. 49), in it he's wearing what looks like a long, belted tunic and is crouching down. The 'skirt' of the tunic is bending and morphing with the legs instead of falling like one would expect. And on page 59 in the image with the giant spider, the ringed loincloth seems anchored to the legs. That could be the screenshot being taken mid-movement though, things can look really weird that way.
I'm kind of more concerned about the armours being all one piece like
Fallout because what we've seen doesn't seem to be mix and match between things, everything looks to go together. Could just be the same way they had the cover boy for Morrowind in bonemold and in legion armour for Oblivion. Yeah, that must be it. Hopefully. I'll wait for more info and screenshots before really starting to think anything.