Bought mine at my LQS. There really is a difference i quality flannel I got there and the Joanns etc flannel.
I washed my flannel with the other regular cotton fabric I am using in the quilt. No "balling" problems. I chose the flannel because it was the only fabric in the shop that had the right color and pattern for my quilt. I starched the living daylights out of the flannel and it is working just fine with cottons.