Got bored, so i modified the source to grab capes from mccapes.com.
also fixed the issue with capes not rendering correctly on halflings/dwarves.
Pics
Picture 1
Picture 2
Download
Install instructions
Download zip
Extract the 2 files inside the 'minecraft jar' folder .
Copy the 2 files from the above step into your 'Modpack.jar', found in the same place as minecraft.jar. (too lazy to rename the folder)
To give yourself a cape, go to mccapes.com, login/register and follow the instructions.
Backups of the original files are provided in the backup folder.
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Let me know if there are any issues.