craftiladi ... you can make your own felted wool ... go to a local thrift shop and look for 100% wool skirt / jacket / etc . Most people don't buy wool clothes. You should be able to find them for less than $10 especially if it is 'Sr day' discount ..
When home, take out seams, remove buttons etc and interfacing. Wash in hot water.
Might seem like lots of work but real felted wool is extremely expensive in stores. I have a friend who loves to find special colors of wool clothes and will even dye them to the colors she wants.
here are some instructions but you can find more online
http://www.suite101.com/content/felting-tips-a66661