AZ Knitting and Needlepoint is probably the closest that I've seen of what I think yarn heaven must look like. You walk into a shop that has literally floor to ceiling yarn! They have bins set up for each type of yarn, and have the hanks of the fancier, hand dyed yarns hanging from the ceiling. The books are situated right behind the register and they are also wonderfully organized by book type.
There is a room in the back that has everything you can possibly think of for needlepoint. The canvases are hung up on skirt hangers and organized on a round clothing rack. Wow... looking at those was awesome!
There is a large table in the back that is perfect for sitting and chatting while working on you latest project. I was made to feel so welcome at this shop - it has to be one of my top favorites.
Now, getting there was a bit of a challenge - mapquest did not give very good instructions, so make sure that if you're going there for the first time that you get good directions from the shop.
I was so impressed with the service - when ever I need anything knitting or crochet related, I know that this will be one of my first stops. Even though it was closing time, the employees still took the time to make sure we got everything we were looking for - my mom wanted the pattern for a really cute sweater that they had hanging on the wall... and it took a bit of looking for the book, but they found it for her. I was really impressed.