The lastest Martha Stewart Kids has a good article on fulling (felting?) – soaking wool fibers in warm soapy water and rubbing to cause the fibers to felt. Halcyon Yarn sells hunks (I don’t know the correct term, so hunks it will be) of wool in great colors. They’ve got a whole lot for felters and spinners, here is the fibers main page. They also carry a bunch of felting kits as well as a washboard and felting board.