Rigging Skirts Blender 2.6

[CashRules]

Hi everyone I made a kids skirt with my custom kid shape. An now I am having troubles with rigging the skirt, currently I have been told to select the skeleton layer, then the skirt layer in hit ctrl>p when I do that a box pops up saying set parent to: object or object (keep transform) I'm not sure witch to select. Also when I do select object (keep transform) then apply the custom kid shape I can then hit ctrl>p in now gives me more parent options such as shown in picture (3). Can someone please explain what I am doing wrong

SKIRT MODEL PICTURE (1)

 

SKELETON & CUSTOM SHAPE & SKIRT PICTURE (2)

OPTIONS PICTURERE (3)

WEIGHT PAINT MODE: not sure if the soild blue is good or bad. :(