Preheat oven to 350. Beat together sugar and butter. Bean in vanilla and egg. Mix in flour and all but 1/3 cup hazelnuts. Divide dough into quarters. Roll out each portion on working surface to 30 inch rope, about 1/2 inch thick. Cut into 2 inch lengths. Roll pieces in remaining ground hazelnuts to coat lightly. Curve into crescents. Place on ungreased baking sheet. Bake for 10-12 minutes or until crescents are golden brown on bottom. Cool on racks. Makes about 5 dozen crescents.