WWE hair physics is so nice!! unfortunately, it was havok! so, physx can do that?
Yes, PhysX is capable of doing things such as hair. The only thing that is stopping you from doing this in Unity is the absense of cloth support. The APEX Clothing module will make this even easier. See it here.
Hopefully in Unity 3.0 you will be able to do this, however they haven't given out any specifics about what they will be updating.