See here, I've made these models look like they're trying to burst through a condom. It's great and all, except that the deformed meshes always cause a crease between the undeformed polygons and those polygons that the Collision Object is stretching.
I will go away and play with using the Stretch and Falloff vertex maps - according to the help page on the Collision object, the Stretch mpa field determines the smoothness of the transition between the deformed and non-deformed polys. But in practice that's not really happening. Adding a hypernurbs doesn't smooth the crease like HN subdivide would, instead the crease is reinforced by the subdivision.
Does anyone know how to make two surfaces that are on the exact same plane not to intersect and fuzz up at render time? The Connect object isn't working in this case.
To test, try glomming a plane onto a cylinder with the Surface modifier - you'll soon see what I meant if you do anything interesting with it...