I tend to get yarn where ever I can to do a project but Smiley's Yarn (based in NY) has some great deals on yarns. Sometimes the choice of colors are limited.
When you can get a yarn that normally sells for $4.99 or $5.99 for $1.99 or even $2.50 it's nice.
They do have a minimum order of $50.00.
Thanks for all the sites! I'm checking each one out. Some seem to have great yarn but lack in the supplies department, so i think i will mix and match! Any more sites about knitting would be great, pattern sites etc.