Edge Maverick in Star Ocean 4 had good hair. Every blade of hair has full physics and moves accordingly when running, jumping etc. Hard to notice if you don't have a HDTV and you are not zoomed up.

Best ingame close up picture I could find.
Arumat also has pretty good ingame hair.

Reimi also has a bouncy ass but that hardly counts as hair.
Its nice to see Tri-Ace putting my Xbox 360's CPU to good use *Sarcasm*
I really feel sorry for the person that took the time to make that video and my heart goes out to his parents.








