That's great interactive video explaining things by Rampa :)

If you want to go the extra mile preserving spring interaction, here is a way..

There are some extra hoops to jump through, as noted by 4u2ges, to get the hair onto an animal prop in CC3 and then attached to the animal head bone in iC7. Especially with this particular hair. Not all the steps will appear in the UI of the Modify panel in CC3 as you would expect, but the process does work, and you can confirm in the Scene Manager. See my method here. Once in iClone, the Modify panel will show what is expected.

You're right. I've tried it with other hair props and I do see the button. And it does work fine. Good to know.
The other way works for the Afro.
Thanks everybody.

You're right. I've tried it with other hair props and I do see the button. And it does work fine. Good to know.
The other way works for the Afro.
Thanks everybody.

Probably because that hair appears to be an old CC1.5 hair asset. I forgot they even exist :)

For those types you may still use "Create Hair, Brows Beard" and select Accessory type for conversion (that sort of convert to modern asset type  - ready to be hair or accessory).
And then the "Convert to Accessory" button should be available to actually convert it to accessory.



Update:
After digging a bit deeper...
Those afro hair was probably a unique creation of RL, which had embedded spring bones.
That is why there is a fail safe for converting to accessory.

In case you need to convert to prop and at the same time preserve spring bones structure for interactive hair, you would have to export character to FBX,
then import to Blender, strip everything but the hair and spring bones and import back to 3DX. Then activate spring bones again.

Yea, the button appears for some of the hair, but not for the party fun afro.

Don't have that. Just "Edit Mesh" and "Create Hair".

Both CC3/4 have this button for Cloth/Hair/Shoes/Gloves:



In addition in CC4 you may detach accessory and save it as prop, while for CC3 you have to send character to iClone to detach.

I don't see it either. I figured out a way to do it, but I don't see that option in CC3. Do you mean the button "Create Hair, Brows, Beard"?

It works!
If this can help any body else that's still in iClone 7, CC3 and 3D Xchange:
- In Character Creator: Export - OBJ - Character with current pose (important. The first option "Nude character in bind pose" will not export the hair)
- In 3D Xchange: Make sub-prop from the hair - export to iClone
- In iClone, open the prop, the avatar will still be attached to it. Select the hair and detach it.
There you go.

Thanks.