Token of the Scoia'tael
Squirrel puffs, or tails, are skinnable items, of a sort except these come from people. The tails are used as a form of symbol and decorate the helmets of members of the Scoia'tael. They, like all other additional goods, have no alchemical value whatsoever. They can not be sold or traded, as it seems.
Wherever one finds dead Scoia'tael:
Squirrel tail is a quest item in the third game. If one decides to kill the Scoia'tael unit during the contract quest, Woodland Beast, one of these must be collected from Vernossiel to give to the Redanian captain as proof.