Are you using from the inside of the skein or the outside? This may be the reason it is untwisting. This is not one of my favorite yarns, but that is another story.
I, too, love it -- it's inexensive, washes well, and is so soft it's great fot those washable babies and kids clothes. I've never had an issue with twisting or splitting. (I doubt if it's you, though!
Part of the reason the yarn is so soft is because the twist isn't very "hard", which is also part of the reason why it untwists on you.
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Zina
OTN: Eyelet Chemise in Handmaiden Sea Silk (colorway: Midnight). Still. And a purple Donegal Tweed set of fingerless mitts, to try out my new Hiya Hiya interchangeable needles.
Latest FO: A shrug for an Anthropologie swap in beautiful Casbah sock yarn, in Cedar, a dark green semi-solid, my own pattern. Also a quick Noro Silk Garden neckwarmer for my friend Aideen, in a vine lace pattern.