I agree that the Stockades is a decent place for wool. And here's a way to make it better:
Ask your party members if they'll sell you the cloth they pick up. Some of them will be tailors themselves, some will want it for FA. But there will probably be at least one companion who has no other plans for the Wool, etcetera, that he picked up than to sell it anyway. Offer to save him the trip to town and the deposit fees. :D
It won't net you tons of extra cloth, but the 7 or 13 pieces you may be able to buy from that party member is 7 or 13 less you need to grind. Even a little helps, and if you play a class that spends alot of time in Instances (like my priest. ;) then that little can add up quickly.
Good luck. And no matter how sucky the road ahead, stick with Tailoring. Its worth it in the very end.
Edit: You can also use this tactic while grinding in zones where Wool (or whatever cloth you're after) drops. An ocassional "WTB Wool Cloth. PST" in General may net you more than you think. But to be honest, this method doesn't
work as well (at least for me. I always get the funny guys "Try the AH, noob") as the one outlined above. Never hurts to try
Edited, May 24th 2007 9:08pm by pipedream