I used the Verlet integration and relaxation method described by Thomas Jakobsen in "Advanced Character Physics"  coupled with the animation techniques suggested by Chang, Jin, and Yu in  to make a fast hair simulation. My resulting video  was captured in real-time. The program can actually be sped up significantly by placing bounding boxes around individual quads, vertices, and segments; however, I ran into bugs when I tried to do this, so I left that optimization out for now. The results are interesting because they indicate that in video games, hair can be animated in real-time with relative ease. The source code has been placed in the public domain.
(Video) (Writeup) (Source Code)