Yes, yes, yes! You read it from the title. But there's more to it than just that. There have been many many many improvements in Blender's particle system, this we owe a lot to Janne Karhu (aka Jahka) and all to the Blender developers (most of which does voluntarily) who has been dedicating their time and effort to improving Blender as we see it now.
I have long been waiting for this feature to be reimplemented to 2.5. And, yes, it's now a dream come true.
Without further ado, you can check the video below for a proof of concept: