If this is a cut out issue, I may have a solution for you to try.

Make your cut out as best you can with whatever software you choose. (I use CS3, but have the trial of Fluid Mask for a few more days which is working pretty well).

Then, Select the area of the hair/background transition with a quick mask in CS3. Within that selection, go: Select>Color Range>Whatever color seems to be in the background (I use blue a lot since I'm on the blue screen, but any primary color works well if there is enough of it in the background).

You'll probably get a message along the lines of "no pixels were more than 50% selected" which is OK. Then, you can use the eraser tool, or the "clear" (Delete Key on Mac, I think backspace on PC) to remove the background color and leave the wispy hair / fuzzy fur in tact.

Obviously, this won't work out as well if you have red in the hair and background and use red as your selection.

FWIW, I haven't had any better luck with Fluid Mask on furr / hair than with any other method, but it works great for most other things.