Okay...been following this thread for a bit now...obviously curiosity has gotten me. I looked at all of the pics and did some research too. I however have not found in bulk the elastic...but the best I can figure is that it is the Super Soft Stretch Elastic in 1/8" width that we are looking for. Now taking that and googling and searching, I have found that Stretchrite has a soft stretch elastic used in making baby clothes where the elastic will be near the skin (i.e., cuffs, etc.). I have found 2 websites that offer prepackaged 4 yd. lengths of 1/8" Stretchrite Soft Elastic:
Joanne's, an obvious choice and their price was $1.59 per package. www.gehmanscountryfabrics.com
is another choice with their price being $.89/package. But it seemed they had a limited number and you can put in your zipcode for a shipping price by ground.
I have not found anywhere would it would lready be dyed and in bulk. So assuming (I hate assuming) there may not be a direct supplier...I would look into buying a package and hand dying with RIT and seeing what takes. I have done some research and it seems that knit elastic is softer than braided.
Now with that said, if you want to go the 1/8" white braided elastic, you can purchase that by the roll from www.ctsusa.com
There is no min. order and open to all. The roll is 288 yds at $15.95. Shipping is looking at an additional $10.04 and I do not know about tax.
I hope this helps. Me personally...I'm buying a package and doing some trial and error. If things go well, I might make up several batches of different colors. I'll post pics if things go well.