Lets get some links in place to help and look at some of the options that are out there.

First, from a purely stem cell approach, we have researchers with Dr George Cotsarelis at the University of Pennsylvania (had to use Google Cache on this one .. hope it helps) who have identified stem cells or master cells in the hair follicles of mice.

They found that these cells grow into hair follicles and produce hair when transplanted into skin.

BBC's Article

Additionally, we have a study by Elaine Fuchs, a cell biologist at Rockefeller quoted over at MSNBC - “We’ve identified cells within skin that bear all the characteristics of true stem cells -- the ability for self-renewal and the multipotency required to differentiate into all lineages of epidermis and hair,”

Stem cells may treat baldness, burn victims

Elaine Fuchs' research work is documented in detail over Howard Hughs Medical Institute:

Stem Cells and Their Lineages in Skin

From there, we go to look at the work done by Dr. Ken Washenik cloning hair follicle cells to address balding. His work has gotten a good deal of press in the past.

For a good writeup on his work:
Hair Cloning Nears Reality as Baldness Cure

We also have a video article on follicle cloning here:

Using Cloning Techniques In Hair Transplantation

More videos with Dr. Ken Washenik discussing balding issues:

Webcasts with Ken Washenik, MD, PhD

Hope this helps some of our searchers, and in the future, we will do some digging into more of the cosmetic applications being researched to see whats out on the edge as it were.