I have done multiple things to hide a mic, I have tried silk over a mic but even that distorts, I know cleavage is an option, but most talent are pretty embarased about me micing them up, Is there any product out there to help with placing a mic so I do not get any fabric distortion?

Have you tried making two triangles (like folding a paper "football", or the way you're supposed to fold a flag) of gaffer's or surgical tape with the sticky side out? Sandwich the mic element in between the two triangles with their points down. Then stick one side to a cotton undershirt and the other side to the inside of the outer garment. Leave a loop of slack in the cable, that's always important no matter what. Also search on the RAMPS forum for other techniques.
Cleavage is great for hiding and protecting mics. <no comments>
Ask the participants to wear something more like a sports bra and less like lingerie, if that will work with the wardrobe. Also recruit a female assistant that's familiar with exactly how to place the mic and the cable.
A selection of clips, including vampire or magnetic clips is also handy. A full set of these comes with every AT899 lav.