Cheap yarn/crocheting covers questions

[Melaine]

I have crocheted since I was a little girl and use mostly cotton yarn and do easy stuff like wash cloths, scarves, purses, dolls, drink cozies, etc.

I'm interested in trying to make some covers or shorties (I don't even know all the terminology yet!) for new baby. I tried a pattern online last night and I think I will be able to do it, but I've never bought wool yarn.

Are there any inexpensive but decent wool yarns available at AC Moore or Michaels (that I can use a coupon with!) How do I know if I am looking at good yarn or not?

Any other tips for getting started? Thanks for any help at all!!

ETA: I was going to use this pattern: http://www.clothdiapernation.com/vbf...ght=topazdodge

But any other easy and cheap pattern recommendations would be VERY appreciated!