I'm making a scarf for Christmas for a friend with all the little bits of yarn I have left over. You know the bits of yarn that isn't long enough to do anything with and would otherwise get thrown out. If you know where I can find good quality yarn for cheap or free please let me know, even if it just scrap yarn, I would greatly appreciate it.
:)
Goodwill, St. Vincent de Paul, or other charity thrift shops usually have lots of yarn, most of the time very inexpensive.
Also try your local Freecycle group. (Yahoo groups)