The problem was that I was using smooth meshed preview (button 3). I had to convert smooth mesh preview to make it work.
Anyway, I've been working a lot on the other parts of the scene now but I'm back to this character again. I'm pretty happy about his fur right now, although there are a few things that I'd like some help with.
1) I'm not entirely happy with how his fur is around his mouth, nose and eyes. I'm not really sure how to handle these areas. Any suggestions are highly appreciated.
2) Render times! I have no idea what has happened, but my render times are insane now. Previously it took me about 10 minutes to render with the same settings that now take me one hour and 25 minutes (image above took that long). The only changes I've made are a few minor changes to the model (gave him some claws that I merged in... could that cause some weird issues like this?). Really need to figure this out since I'm doing a uni project here and will have to animate a movie, and with the current render times I wouldn't finish in time even if I was done with everything and could start rendering right now.
Other comments and suggestions would also be appreciated