I was in Mountain Stitches by Susan over the weekend, small shop but very nice.
There is also a shop called Holloways, it is in Crosby TN, it isn't that far from Gatlinburg just ask and I'm sure someone can help you. If you drive to Wears Valley (hwy 321) there is a starting out shop called My Smoky Mountain quillt shop. This one is in the basement of her house so not very big, very nice lady