Okay, Audra, I'll take the bait.
L.K. Yarns in the Hydrostone Market, 5545 Young St.
A good LYS that carries a wide variety of yarns, including the prosaic (Patons acrylic), reliable basics (Briggs & Little worsteds), novelty (Snowflake, Fun Fur, etc), to luxury and handpainted yarns like Kureyon. The store also carries a handpainted yarns from The Fleece Artist (see below). There is a small selection of needles and notions. You shouldn't go expecting to find the size you want.
The Fleece Artist, 1174 Mineville Road (Near Lawrencetown Beach)http://www.fleeceartist.com/
(the website's a bit of a mess)
A wonderland of handpainted luxury fibres. Coned yarns. A wide selection of Addi Turbo, Brittany birch and bamboo needles.
Tradewind Knitwear Designs, Dartmouth (434-5179)http://www.tradewindknits.com/
The home-based mail-order business of master knitter Lucy Neatby. Call to visit; she's often out of town. She carries needles (including Crystal Palace sock needles), great notions (coil-less safety pins, blocking wires...) and some yarns (Shelridge Farms merino, self-patterning sock yarns, New Zealand lace yarn).
For knitters with some experience, I highly recommend Lucy Neatby's workshops at the Nova Scotia Centre for Craft and Design on Barrington St. <http://www.craft-design.gov.ns.ca/>
I haven't done much sewing since moving here, but I just got a new machine, so I'll soon know more. I do know that Fabricville, now located in the West End Mall, has the best fabric selection.
For general crafting supplies, the NSCAD Bookstore is great - PVA, bone folders, x-actos, many kinds of straight-edge, papers, even some nice, cheap yarns.