Are there the best places for Alliance to farm wool cloth? They are all as follows:
Stockades in Stormwind are the single best place for Alliance characters to farm for wool cloth. The problem is that it is very hard to solo here, unless you are high enough level. You are able to get two or three stacks per run and should keep all the green and blue items that drop. Sometimes you may come across a nice level 19 twink item that will sell well in the Auction house.
   Deadmines is another instance in World of Warcaft. It takes longer through the Deadmines in that it is a lot bigger but you can come away with about 5 or more stacks of wool.
   In general, any where that humanoids level 19 to 25 spawn. You want to find a spot that has a fast respawn rate such as the undead in Duskwood around the raven hill area.
   Are there the best places for Horde to farm wool cloth?
   All in all, the Stockade's are the best place to farm for wow wool cloth so the Horde has a slight disadvantage here. There are some good places for Horde to try as below:
   Shadowfang Keep located in southern Silver Pine Forest. If you run this instance, you have the ability to expect to get about one or two stacks of wool cloth per run and lots of greens and the wow account occasional blue. This is a very good instance to run. It's quick and greens drop like crazy here. Most of the blues have come from treasure chests (locked and unlocked) so if you have a Rogue, this is the perfect place for you to farm. There are about four treasure chests that spawn in Shadowfang Keep and sometimes they are all locked!
   Deadmines Located in West Fall. They are not as hard for Horde to get to as the stockades are but still a bit out of the way. If you feel like taking an adventure head over to the Deadmines, you should make sure that you come away with a ton of greens and some wool.