FWIW, you could use the curtain form object from the library, set the size and a few waves. Then disperse some of the LED round pixels around the curtain. Another idea would be to take a snapshot of the actual curtain and create a material to attached to an object form, static, but would give you an idea of the look.

Currently I have used the curtain object mapped with an image of a starcloth.

That looks pretty good with a bit of luminance but is just static as you say.

I may take the time at some point to make a cluster of led's to replicate a 4 channel cloth if I need to see it running live.