Allow me a moment, if you will, to sing the praises of Jade Sapphire Lacey Lamb. This is the yarn I've been using in my sample knitting for Weaverknits. I've been continuing with the sample knitting using a couple new colorways and I just love this yarn.
The Lacey Lamb comes in an 825 yard ball and is available in more than 25 colors. It is machine washable (hooray!) and even dry cleanable. The fact that is 100% lamb's wool makes it very soft and just lovely to work with. It is also reasonably priced. While I personally haven't seen it in an LYS it is available online from many retailers like Purl Soho.
And now, a quick sneak peak at the sample knitting.