[knitasha]

elann.com has their own well-priced private label yarns (like KnitPicks), plus terrific prices on a wide variety of high-quality yarns, many of them European. Loads of free patterns. Good prices on Addi needles. Prompt, intelligent service. Sign up for their monthly updates on new yarn arrivals.

sandrasingh.com has a brilliant selection of boutique yarns (eg, Lorna's Laces, Cherry Tree Hill, Karabella, Malabrigo). Sandra also seeks out interesting patterns from new designers and offers lots of good free patterns as well. Her site also features hard-to-find needles and beautiful knitting bags. Nice service.