We have a nice shop in Nebraska that advertises as "Wool felt central"
Here is their website
http://www.prairiepointjunction.com/
http://www.woolfeltcentral.com/
Nice place. I bought some to do some pincushions. They have so many colors. They do alot of penny rugs for display. Its the same place, but they have two websites. You can get to the wool felt through prairiepoint, or go directly to the wool site.