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The Bend Editor.

The Bend Editor allows you to use a Shadow to distort the underlying Texture. This creates an illusion of the Texture bending around the Shadow’s light/dark areas, which allows you to simulate three-dimensional surfaces such as drapery.

a-		Bend Amount controls the amount of distortion that's applied to your Texture. The higher Bend is set, the more the Texture appears to wrap around the Shadow’s dark/light areas.
b-		Bend Amount also blends the Shadow with the Texture. This creates new dark/light areas in the Texture.
c-		You can use your own grayscale image as a Shadow by importing a JPEG, BMP, or PICT image. For instance, load in a photograph of folded white cloth. The Shadow is no longer resolution independent, however, this a great way of combining the flexibility of Backdrop Designer with real world images.

LEFT: Our photo of white sheets.
TOP: A Texture preset in Backdrop Designer.
BOTTOM: The Backdrop we made by combining a Texture preset with using the photo loaded through the Shadow Bend Editor.