oh well......i tried crepe wool, i tried crepe hair, i tried my own hair chopped into something like a powder, which works best still....but to tell you the truth, to make it look anywhere near authentic and not lie down like you described, you need to leave the hair rather long - so that would result in a full beard or thick sideburns or whichever style you desire.
here's what i did, but a couple of words on that before you start buying crepe hair etc. :
1) you can't avoid that there'll be some shiny spots here and there which will look very unnatural in bright light
2) it takes about an hour even once you've found out how to do it right
3) it itches and causes spots and to take the spirit gum off you'll need alcohol or something like vaseline.
4) you can create a five-o'clock-shadow in less than 5 minutes with eyeliner rubbed on moisturized skin and it will look REALLY authentic...much more so than spirit gum beards.
okay so....
1) cut your strand of crepe hair so you'll have a straight edge about an inch long
2) put spirit gum on a small section (i usually started with one stripe from ear to chin, about a quarter of an inch wide) of your face
3) spread the strand of hair between your fingers so it doesn't look too dense
4) stick it to your face vertically, holding on to it until the spirit gum starts to dry
5) pull out excess hair
6) build up the next layer on top of this layer
7) trim in the very end after all layers are thoroughly dried
honestly, it's a hassle, and even make-up artists don't do it anymore these days, so it's pretty much useless for anything but sideburns or soulpatches maybe.