I believe that in some (perhaps rare) cases, fossilized dinosaur skin imprints have been found and this was scaled, although we can't tell what colour the skin was from fossils. Even though the skin hadn't survived in fossilized form, the imprint of the scaled skin in the surrounding rock has. Many dinosaurs developed feathers and have evolved into modern day birds, so a sort of downy fur is not out of the question, particularly on these feathered species, such as archeopterix, the earliest feathered dinosaur so far discovered. I was a dinosaur fanatic as a kid.