My sister is looking for nursery fabric and can't find any that she loves locally. I know the feeling! My town has a very expensive "decorator" fabric store, an expensive quilt fabric store, WalMart, Hobby Lobby and (thankfully) Hancocks. However it is still very hard to find something that I LOVE. I've tried the following online stores with great success and thought someone out there in blog land might want to check them out.
Fat Quarter Shop great selection- good sales and a wonderful combination of fat quarters, cake layers, jelly rolls, etc.
Another favorite is an eBay store. They have some cute collections and some very nice prices, Quilt Taffy. Check out their Darla and Farmer's Market collections- I like anything designed by Tanya Whelan.
A store called Fabric Shack has some great prices, but there is quite a bit of not so cute stuff to look through-
Hope this helps someone!