Sounds like something you would procedurally generate if you ask me. Just make several varities of grass model (eg. billboarded, alpha masked polys), and get the programmer to place them at random if the ground is using a certain texture. Placing them manually, as you suggested, sounds like a helluva lot of work. Won't get a better LOOKING result of course, but as my modelling skills are lacklustre I'm in no position to suggest how best to go about that.
so i'm guessing the grass sprite days are over 
hehe, good luck, i've tried making grass in 3dsmax, i gave up haha, ittakes alot of work and patience
You arent really supposed to do that in Max or Maya, engines most of the times have specialized tools or settings for it that can help you
Scatter or some type of particle effect would be only option i see in max
I was looking into the same thing yesterday man. Scatter is your best bet for a QUICK fix. I'd suggest using both. For instance use a small polygon version with alpha textures. Than use scatter to move that around to get some real intensity.
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