Hamlet has an article about Damien Fate’s latest project, a fuzzy tail on pajamas. Damein also has a free friendship bear that uses the technique too. You have to see this to understand what Damein has accomplished. It is pretty awesome. This is going to be great for fur collars and similar stuff.
The Pajama’s tail is awesome. See New World Notes: Fluff Piece: Here’s How An SL Designer Is Using Materials To Tackle One of The Biggest Challenges In 3D Modeling. Check out the images on Hamlet’s site. Damien explained how he does it; layered normal maps.