I've used Dharma's pfd fabric, it's good
cotton sateen is real good
mercerized cotton is not, unbleached muslin and some bleached is not
the white fabric from connrcting threads is not, it looks like the wrong side of the fabric on both sides! it's great if you need a good white fabric tho.
are you going for solid/even dyes or the mottled batik look?
there are a lot of free instructions online, some at dharma
have fun and remember... safety first, DO NOT BREATH THE DYE POWDER