Thanks Andrea, that did the trick. The two things I am having trouble with now are:
1) Vellum object collision is not registering. I thought it might have to do with the thickness of the cloth (since there is some space between the objects) but changing it didn't affect collisions. I also tried tweaking the the "Search Scale" in the "Advanced" tab of the Vellum Solver, but that didn't do too much either. I feel like I am missing something simple?
2) The collisions look "flickery" when I visualize them. To get around it I have increased the Substep Iterations on the vellum solver which helped a little but it's still a little jittery. Do I need to just increase the substeps or is there a work around for this?
Lastly, I noticed you had increased the "Max Acceleration" on the Vellum Solver and I thought that might help me with my balloons inflating smoothly but they still are pretty jerky when they inflate? Any tips.