In 3ds Max 2010, V-Ray supports native rendering of the 3ds Max Hair&Fur world-space modifier. Here are some notes on the implementation.

 

Note: If you use 3ds Max Design 2010, you may get a crash when attempting to render Hair&Fur with V-Ray. To resolve the issue, go to the 3ds Max main menu > Customize > Custom UI and Defaults Switcher... and select a non-DesignVIZ preset (e.g. MAX.vray). Restart 3ds Max for the new settings to take effect. You should now be able to render Hair&Fur with V-Ray properly.