Hair is always tricky. Masking software is probably the best way to do this. If you try to ensure you take your pictures so that the subject is on a different colour background then the masking software works much better (kind of like greenscreening in films). You can see my 2d cutout people on my website http://www.kropped.com where I used some masking software.
It's more complicated than the lasso tool, but quicker and neater once you are used to it.