Thank you for the effort, Kancel0, but it doesn't solve the problem with Windows 8.
I use both 7 and 8, and it works great on Windows 7 except for (on some systems) CTD (crash to Desktop) when attempting to move inventory items.
On Windows 8, however, as myself and several others have reported, it does work at the character selection screen but once a character is selected and the game is started it stops working and the underclothes are again visible.
Since my main home PC is dual boot Windows 7 and 8.1, it isn't too very inconvenient to use 7 when I feel a need to undress my little Kelari cleric Shamicar, but I sure wish I could stay with Windows 8.1.