Mum read somewhere if you unravel a knit, re-skien it over a full hot water bottle. Then wrap it in a just slightly damp tea towel. Leave until the hotty watty bottle is cold and it will have steamed the wool smooth. ;D
Have you thought about a free ad in the local rag under the wanted section, or mention it to the local church - ours 'acquire' wool for the ladies to knit for the prem baby unit, hospices etc. And don't forget freecycle. I bet there are masses of people out there with old wool that they don't want.