I also have used Connecting Threads' flannel and was quilt pleased with it and the scarves I made with it turned our quite nice. I would recommend them highly and I just received an email from them with a multitude of new flannels......Check them out.

I had a problem with some beautiful flannel that I bought at the LQS. I washed it and dried it and when I was finished I noticed that there was a flaw done the center of the fabric. I had planned on using it for a whole cloth baby quilt, but, after finding the flaw down the center of it,I will have to use it in another manner. My point is, it just isn't JoAnn's or Hancock's. It can happen anywhere.

I use flannel for backing on all my baby quilts. I have bought at both Joann's & Hobby Lobby and not have a problem. Just lucky I guess.

I would use fleece instead of flannel any more. You can't depend on the quality of flannel these days.

Have to agree with you, it might look and feel great in the store, but resoults can be unpredictable.

I love Moda flannel!

I had the same experience with a baby quilt a few years ago - but it was not washed until I finished it - a rag quilt. Ended up a dog bed. Very disappointing. I was in JoAnn's yesterday and noticed the local store has more flannel than in the past and a lot of it is very thin - I could see my hand thru it. VERY disappointing. In the long run it seems to be best to purchase the more expensive flannels to get good results. I love flannels.

Interesting -

I bought some flannel that seemed "cardboardy/feltlike" on clearance at WalMart last summer - I washed it up and it turned out great! It's dense, fluffy, and didn't pill.

I was pleasantly surprised.

As far as the 2 inch WOF fabric shrinkage - that sometimes happens with 'regular' quilting cottons, also.

This is slightly off the subject...
I bought fabric last summer on clearance at Wal Mart($3yd), it was stamped: Cranston V.I.P. 2009 etc, etc.. Just used it for backing. It worked great, washed up great, ironed up great, way better than fabric I had purchased at Jo ann's for this same project, so disappointed in the Jo ann's fabric I eliminated it from the project... I had read where you could buy older fabrics at Wal Mart, I was hoping I had found a diamond in the pile...
I am so new to quilting I was not aware that there was such a difference in flannel in years past. I love Moda so I am eager to try their flannel.

I am really careful when it comes to buying flannel for that reason. I can usually tell by the thread tightness in the fabric. If it is a lose thread, I stay away from it totally. If you can see the threads in it run away. The good flannel you have to look really hard to see the threads.