Attached Link: http://www.renderosity.com/gallery.ez?ByArtist=Yes&Artist=Zenman53186

Well, not working isn't quite accurate. With the release of SR3, Poser 5 does apply dynamics to hair in such a way that you can get decent renders. See my gallery for examples.

The current limitation is in animations. The hair does not work well in animations at all. I am hoping SR4 (rumored to be out in Jan/Feb will resolve some of the dynamics issues.