hi. posted reply under your photo sorry not ment to do that. here have a look at this page, teddy by magical cakes http://www.flickr.com/photos/tashjeffery/favorites/page2/?view=lg
This is just an idea but I might try using tiny pointed scissors I would cut randomly into the "fur" to make it more fur like.
I have seen some on internet using the grass tip to make body of bear look like fur. They must have used butter cream with the grass tip/ Maybe someone else will have a better idea!/Mary
It looks like you've been pinching it with tweezers. You're on the right track, but you need to use the smallest ones you can find (I like ones like in the link below) and actually pick and pull at the fondant.
just found a youtube link that might help you... I don't know how it turns out because I can't read the video (it bugs at the beginning) but maybe you'll have some luck and it will help you...
Thanks Ladies, I used scissors, toothpicks, my fondant tools, cheese grater etc - they all give different effects. Works nicely depending on the outcome you wanting,
Send us a picture since you have fixed it. I bet it looks terrific now!!!!