nice thinking missed the fundamentals a bit.
QUOTE
5) Under the Animation Menu, go to : Deform > Create Wrap
Now this step is insane, you dont need it. And its possibly 100 times slower than the natural alternative. And safer because if two points coencide at any point in your modell yu may be in serious trouble.
instead right click on your subd and go to polygon proxy mode. NOW this is your subd surface. Its also a polygon and its directly connected to your modell. if you move it your subd updates (and is hellofalot faster than the wrap also infinitely safer because it is the real level 0 data).
Assign the polycage with a material to make it shade (you need this to see the paint feedback). You may want to hide the subd for a while here. Now bind this mesh to yoru skeleton paint. And viola your subd follows suite with no wrap deformer. (the wrap defrmer is by the way the heaviest operator in town).
However most of us work up down anyway so we conevrt it to sud from the polygage so they dont realy se it the way you came to this because they allready bound the cage and let history take its course dowstream. ITs a perfectly valid alternative but basicaly same thing.
Then a HC tip for going on beyond this, you can transfer the skin data ffrom the mesh to teh subd. BUt this is realy rarely the way to go since the above is as fast and as a bonus gives you proxy.