Sally Mavor is a renowned artist whose amazing embroideries feature in books and art exhibits. She uses a lot of felt as the basis for her embroideries and in this article she talks about how she uses wool felt, where she buys it, and the difference between what she does and felting.
If you use fabrics occasionally in your needlepoint (I personally have used Ultrasuede, felt, netting and lamé), you'll be very interested in her recommended sources for good quality felt. Note that 100% wool felt is more expensive and heavier than synthetic blends. I don't find the felt you get at the big box craft stores to be very good, especially if you can order better stuff online.
Wool Felt--
This Etsy store is in Canada and also sells wool roving for those who want to do felting.
Rayon/Wool Blend--
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