After picking up her hair, Jaheira tells you that she should be all right after a good night's sleep. She is actually wrong about this--her curse takes a full 12 hours to wear off, not 8....and it doesn't even matter if you sleep at all. But yes, putting her Hair in your Inventory is what lets the game know that the quest has been finished. After Jaheira says her piece, the Hair is useless.
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Volothamp's Comeuppance
Everything you ever needed to know about the entire Baldur's Gate series......except spoilers.
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