Fabric simulation in Processing. It uses verlet integration. I did my best to comment the code.

I wrote a tutorial on how the algorithm works: http://bluethen.com/wordpress/index.php/processing-app/curtain/
and a follow-up to that tutorial here (this one describes how to use a consistent timestep, among other things):
http://bluethen.com/wordpress/index.php/processing-app/updated-cloth-simulator-and-how-to-improve-your-verlet-cloth-simulator/

Left click and drag to interact.
Right click to tear.
Press 'G' to toggle gravity.
Press 'R' to reset.