You should have a look at 'alive trees 3d' from
Terminal 26. I think they're using the same method for making the trees in their demo.
If their thingy will cost something then maybe you could provide a free alternative.
A user called Gafgar had started writing a similar script in late 2005. I dont know what has happended to it though (
here is the thread).
You could try to randomize the sprites' roll once the game starts, to make the pattern repitition of the textures less noticeable!