Sounds like Can Can (see link half way down the page to video demo The Black Sheep - The lowest priced craft retailer on the web! me although there are other similar ones available. I bought a ball of it at a craft show a month or so ago and knitted 2 scarves in a weekend. They look pretty good but to be honest I've not really worn mine much (gave the other one away) as I've come to the conclusion I prefer standard chunky type scarves rather than fancy ones
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