Hi harleybob,
I have used lambs wool for tying woolhead sculpins and large nymphs.
One day I was at the farm market when the farmers were bringing in the wool for weighing and shipping off to wherever and I asked if I could have a few of the loose clumps lying about the parking lot. I managed to pick up a generous handful of white, black and brown which I cleaned and added to my tying materials.

The wool has a natural oil in it which makes it somewhat water resistant for awhile and the coarseness of the fibers makes for a very buggy looking nymph. If any other board members want, they should give it a try. I was pleased with the results I got when using it for tying.