The "Fuzz" texture appears to be ANOTHER one of those undocumented Imagine features. Anyway, I've done some experimentation with the "Fuzz" texture, here's what I know.
It's a "Space Filling" (Impulse terminology) noise type texture. That is, the texture changes along all three axis.
In its most basic form (equal X, Y, Z sizes and low magnitude and velocity noise values), it produces fuzzy globules (approximately spherical masses).
Space between the fuzzy globules shows underlying textures and attributes on the object.
The texture axis orientation (relative to the object) is not particularly important.
Increasing the clip value (0.9 - 1.0) can result in overlapping globules with unpredictable results.
Decreasing the clip value to 0 results in zero globules.
The default parameter values produce a nice "TV Static" appearance.
Higher magnitude/velocity values result in a wispy smoke type of appearance (see sample parameter values below) similar to that achieved using the CLRNOIZ texture.
Intermediate magnitude values, low velocity values and repetitively applying the texture can produce a scattered cumulus cloud pattern with the appearance of depth (see below).
Column One Two ____ ____ 30 0.4 30 100 100 100 0.6 100 2.8 0 5.8 0 0.3 0 0.7 0
Column One Two ____ ____ 1000 0.5 1000 245 1000 245 2 245 0.1 0 2 0 0.1 0 1 0
Column One Two ____ ____ 1000 0.5 Axis position: 0, -40, 0 1000 220 1000 220 2 220 0.1 0 2 0 0.1 0 1 0
Column One Two ____ ____ 250 0.5 250 245 250 245 2 245 0.1 0 2 0 0.1 0 0.6 0
Column One Two ____ ____ 250 0.3 250 215 250 215 2 215 0.1 0 2 0 0.1 0 0.6 0
Transform priority 4 texture 0, -40, 0 position.