Testing Max 7SP1 = Mental Ray 3.4 + Shave & Haircut, I just found a lot of nice features :

• generate geometry, thus can be combined with ambiant occlusion
• conform fur along a spline, reminds me Worley-Sasquatch, with more feedback
• tickness spinners are locked to max = 100% but it can be overrid with a texture slot
• physics enabled (didn’t tested it)

‘Tried it with ambiant occlusion & baking. Damn ! It rocks.