Harvest Moon: Friends of Mineral Town Tips

The Low-down on Yarn
The only way to get Yarn is to buy a Yarn Maker from Saibara. You won't be able to get it until you've expanded your Barn. Once that is done you need to bring a piece of Adamantite Ore and 20,000 G to Saibara. It will take him 5 days to build it, but you won't have to pick it up because Gray will automatically install it in your Barn when it is done. To use the Maker just face it while holding your Wool and press the "A" button.

Yarn sells for as follows:

300G Yarn (S): Gained from Small Wool
700G Yarn (M): Gained from Medium Wool
800G Yarn (L): Gained from Large Wool
1000G Yarn (G): Gained from Golden Wool
1500G Yarn (P): Gained from P Wool
4000G Yarn (X): Gained from X Wool