Why don't you use cloth FX.
Do a small scene with the hands and the sheet, give the sheets a cloth dinamic and make the hands collision objects and animate them just a little, then tweak the cloth material so you get the desired effect. After the deformation is just right (or close enough) save the transformes object and you should have a very nice sheet.
I'm not sure it will work the way I imaginded it....it's just an ideea...
Cheers and good luck...:beer:
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