Nothing better than users helping users when it comes to obscure issues.  Thanks again for helping out.

Great, glad you figured it out. And yes it could very well help someone with the same problem. I was posting an answer on another subject and told someone well it should work this way but a glitch is keeping it from happening. A couple of the guys chimed in and said we don't have this problem. I realized it was a local problem and had to reinstall my software. Wouldn't have realized it if not for the forum.

Okay!  Finally figured it out.  Turns out there has been an update to the Character Creator tool (two, actually) since the latest version on the website store download page.  Updating to the latest one in that fixes it.  AND it does bring over the hair, and has the character fully editable, and all the things I expected and wished for.  iClone itself was already fully up to date, and the pipeline, but apparently I missed checking that on CC.

Sorry for the false alarm, but hopefully if someone else sees this thread when having a similar issue it will help out.

Ok let me ask a question. What hair are you adding? and are you trying to edit the character in CC after you add it in CC? 

I've seen that happen in tutorial videos, but for me it just opens the CC tool or focuses it and then doesn't do anything else.  Bummer.  Ultimately it hasn't impacted my workflow, since I've just been adding the hair inside iClone 7 itself.  But it's hard to visualize the character in CC sometimes when I'm working with vastly different hair from what I'm going to be seeing in the final one.  No real crisis, but so it goes.

When I have a CC character in a scene in Iclone and click on Edit in CC. If I have CC open and a different character in CC (like base) it aske me to open project and then the character is in CC ready to edit. IF CC not open it says creating thumb nail and opens CC  asking about replacing project and again it opens the project correctly. 

Right, I've seen that workflow -- which is pretty rough.  But right in iClone itself there is a big "Edit in CC" button on the right-hand side.  When I do that, even using a character that was created in CC and has no custom parts from external files whatsoever, it doesn't actually edit it in CC.  I've seen some tutorial videos where people clicked that and it works.  For me it brings up CC, focuses the program anyway, but doesn't do anything beyond that.

To get it into CC you will need to go through a third party 3D program like Blender. using the figure export from CC. Look for clothing creation tutorials for CC and there is a Tutorial of getting Daz clothing into CC through Blender as well.  I think you can also bring props from Iclone into CC but haven't done this yet. Things like hats to make adjustments to mesh. But if you want full CC access you will have to follow the creation process and just substitute the hair for what they create and follow the rest of the creation process...

"select charactor and edit in CC"

When I try to do that -- and I have the full pipeline version -- it doesn't actually ever load the character from iClone over to CC.  All the other steps work great, and I'm able to work in CC and iClone themselves fine.  Exporting from CC to iClone works great, and in fact that's how the character came to exist in the first place.  All of this is with the latest bleeding edge versions of everything, downloaded in the last two days.

Any ideas?  Googling for "Edit In Character Creator" not working in iClone doesn't bring up any results, so I either must be doing something wrong or this is an unlucky new issue.

you can create a weight map using the UV and a gradian shader. make sure you have a 100% black strip at top of hair to lock it to model and then adjust the rest to suit taste. You can find several videos on the subject. 

Using soft cloth of course