As of 3ds Max 2010, V-Ray supports native rendering of the 3ds Max Hair and Furworld-space modifier.
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If you use 3ds Max Design, the program might terminate unexpectedly when attempting to render the results of the Hair and Fur modifier with V-Ray. To resolve the issue, go to Customize menu > Custom Defaults Switcher and select a non-DesignVIZ preset (such as MAX.vray). Restart 3ds Max for the new settings to take effect. After restarting 3ds Max, you should be able to render the Hair and Fur modifier with V-Ray.
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It is strongly recommended to use hair materials for hair-based objects used for simulating hairs.
