The only way I've found to create realistic body hair is to add it directly to the nude figure's texture map. Naturally make a COPY of the TM before you proceed. Open the texture map in Photoshop (or any image editing app you've got) and use the "burn" tool and a fine brush. (If your non-Photoshop app doesn't have a burn-like tool, use a paint bush. The results are amazing. Trial and error will help you through any wrap around effect. The great advantage to this method is that you get to select, via the materials editor, whether or not your figure will render with hair. It's a bit labor intensive, but worth the effort and so much better than any other needlessly complicated method I've tried.