A while ago Kingjigglypuff made a post about this. There's a specific version of Dolphin that supports them, I believe it was called Dolphin SVN R 6553.
Same here. ^_^ Never got a chance to play most of 'em though. If you do ever play Innocence, make sure to use AbsoluteZero's translation patch, it's really great.
^^Wow, it's looking great! I honestly didn't expect it to turn out so well. Not because of a lack of ability, but because there aren't many vertices to work with. Great job. ^_^
Oh, and the polygon deleter doesn't always work properly. deleting polygons manually is easy though. i think there was a guide on the blog.
@DivineOverlord: That's the first idea that came to mind, yeah. ^_^ I'll have to retexture them though.
@Jokekid: Thanks for the ideas. ^_^ And I like the idea of making a his bag out of the cape, but are you sure there are enough vertices to make an accurate one?