Chattanooga has Lavender Lime - they have their own line of books and a pretty good selection of fabrics. I don't know of any others.
Knoxville has:
Mamaw's Thimble; a HUGE store with lots of fabrics. They also have lots of books and notions.
Sewing Machines Etc; she specializes in Pfaff machines, and not exclusively quilting, but has a great selection of fabrics.
Gina's Bernina; also a large store with lots of fabrics and books.
Cat Lover's (or maybe Purrfect something...sorry I've only been there once...she loves cats and quilting) This is a newer shop I think. They have less fabrics than the others, but their fabrics are not the same ones you see at other shops.
Maryville has Pappy's (or Poppy's) Quilting Place. This is a good shop with a good selection of unusual fabrics. If I lived closer this would be my "home" shop.
Sevierville has:
The Cherry Pit. Also a good shop with a good selection. This shop is run by two sisters (I have heard) and they are very "folksy" and friendly.
Machine Quilting by Iva. They seem to specialize in children's/juvenile fabrics. Lots of brights and kid prints, but also good selections of basics.
Gatlinburg has a smallish shop in the "Artist Colony" section. I can't remember the name of the shop. I've only been there once, and I don't remember them having a ton of fabric, but hey had assembled sets of 10 or 12 FQs and we bought two of them. I think the prices on the sets were good.
If I've left anybody out I apologize. I'm trying to remember where all we went for the shop hop last year and who impressed us.
If you're a real bargain hunter and up for a drive, go to Tazewell and check out the outlet type shop they have up there. We have bought literally tote bins full of fabric for $60 or $70. The selection isn't huge, but they do have some unusual fabrics and some great "filler" fabrics. We have even picked up huge quantities of prints to use for backs.
Keep in mind when I say great selection I am comparing the shops to others that I have seen, of which there are few. I understand there are some shops un NC that have thousands of bolts of fabric, so you may have a different impression than mine. Be sure and post a report when you get home. Hope this helps.
Darren