Little Blessings in Crossville, TN is probably our favorite. Julia and her husband (sorry Mr. Julia I can't remember your name) own the shop and she teaches the classes. They are very knowledgeable and helpful.
Mamaw's Thimble has a HUGE selection of fabric in Knoxville, TN. We've never had any classes there, but they do offer some. Also lots of books and kits.
Darren