Aidan volkofsky posted a very nice tutorial on creating fur with static particles on the CGTalk forum. It requires Blender 2.40.
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About the Author
Bart Veldhuizen
I have a LONG history with Blender - I wrote some of the earliest Blender tutorials, worked for Not a Number and helped run the crowdfunding campaign that open sourced Blender (the first one on the internet!). I founded BlenderNation in 2006 and have been editing it every single day since then ;-) I also run the Blender Artists forum and I'm Head of Community at Sketchfab.