I may be the one responsible for this problem. I can't tell anything yet before I get some further details. Open the hair file in a text-editor (I use UltraEdit but also Notepad will do) and search for the "Tail" material at the end of the file. It should look like this (of course there's "Tail" instead of "Hair"):

<font size="+1">material Hair<br></br>
{<br></br>
KdColor 1 1 1 1<br></br>
KaColor 0.499992 0.479408 0.435004 1<br></br>
KsColor 0 0 0 1<br></br>
TextureColor 1 1 1 1<br></br>
NsExponent 30<br></br>
tMin 1<br></br>
tMax 1<br></br>
tExpo 0<br></br>
bumpStrength 1<br></br>
ksIgnoreTexture 0<br></br>
reflectThruLights 1<br></br>
reflectThruKd 0<br></br>
textureMap ":Runtime:textures:Zygote:Hair:MMWedgeCut.jpg"<br></br>
0 0<br></br>
bumpMap NO_MAP<br></br>
reflectionMap NO_MAP<br></br>
transparencyMap
":Runtime:textures:Zygote:Hair:MMWedgeCutTR.jpg"<br></br>
0 0<br></br>
ReflectionColor 1 1 1 1<br></br>
reflectionStrength 1<br></br>
}<br></br><br></br></font>

Mail me this part of the file to ilari.pihlajisto@mbnet.fi and we'll probably get this problem solved. It's easier to use e-mail and I may have to send you a "debugger" version if this proves to be a bug. Ilari