(sorry - couldn't resist )
Paint a line of latex towards the bottom of the model. Gather a pinch of fur and tease it into the same direction. Trim the top of the fur pinch with scissors and lay the cut ends into the latex line. Repeat to the end of the latex line. Paint the next line up the model so the new fur will overlap the applied fur and repeat until done. When all the latex is dried, comb out the fur that didn't stick and send the model to the hair dresser for a sassy cut. Sorry I don't have any in-process pictures. I've used silicon paint to good effect to add hair to silicon puppets using the same technique.
I hope this is clear. Try it out on a block of wood or something to get the hang of it before moving on to your puppet.
From your pics, you are doing great. For what its worth, I use a technique similar to Alan's. The difference is that I use a product called crepe hair. It is used primarily for fake beards in stage productions. It is made of wool and comes in a braided strand. Many colors to choose from. Simply boil the strand in water and air dry. This loosens and straightens the hair. Then cut off a inch or so and apply to the puppet in layers, like shingles, working up from the bottom. Rubber cement can be used as a alternative to latex. The rubber cement seems to dry a little clearer than the latex which leaves a black line when dry. I just trim off the wild hairs as well as any that seem out of place. I used this technique on the puppet here:
Check Richard Svensson's blog - he made a replica Kong puppet using a technique that seems very similar to the ones already described here: http://loneanimator.blogspot.com/2012/06/puppets-by-request-king-ko...
Great blog, thanks for posting Strider. I had considered using fake fur in the past, but never tried it. It really looks great on Richards version of Kong. Might have to give that a try sometime!
My gorilla puppet, years ago, was originally going to have flocking for most of the body, and fur fabric on the arms, so it would be longer like the hair on real gorilla's arms. So the arms were sculpted thinner to allow for that extra thickness. But with the fabric backing on, they just looked like fat furry sausages with no definition at all, and I ended up flocking the gorilla all over. I used a homemade electrostatic flocking gun. That left the arms looking too skinny. I've often thought of re-doing it but I haven't really needed a gorilla puppet - it just bothers me that I didn't do a great job with that one. You know, it's one of those iconic creatures that every stopmo animator seems to want to have a go at. Ah well, I still learned from it. (The deep shadows in this photo partly disguise how skinny the arms are.)
Flocking is good in that it doesn't twitch much when you animate, but that short fuzzy hair look isn't suited to everything.
So more recently I picked up on the idea of cutting the hairs off the fur fabric and sticking it on in rows. So it's as described, only with contact cement which goes tacky and holds the rows of fake fur more quickly than liquid latex. I did that for my Lioclops's goat legs with only a little flocking down low on the shins and ankles. It can be difficult to apply the fur evenly, with no sense of it being in rows, but short of the classic rubberized skin technique (where beetles eat the hide of genuine fur that's encased in wax, then latex is painted on to form a flexible skin) it seems one of the best options.