Here's a tutorial on how I do my fur. It's actually pretty easy now that I think about it. Not much to it. Oh well!
And as always I use Photoshop CS2 (but you can use pretty much any art program that has layers) and a Wacom Intous 4 tablet (yes you do need a tablet to use this tutorial).
Feel free to ask me any questions!Other tutorials I've done:
Coloring and Shading