This is how I get a seamless look on fursuit parts. It's called the Baseball stitch, and it involves butting the two fur edges up to each other precisely.

I learned this way back in 2006 from Alopex the fox. His Powerpoint tutorial was one of the most awesome things I'd seen!

This stitch is slower to do than the blanket stitch, and not as strong as a machine stitch, but I find it extremely useful for specific tasks.