Ohhh!! I can help with this one! Newton has a full craft section (best in Lauderdale/Newton county area), Meridian on Hwy 19 has yarn, a few sewing machines and some beads, Meridian on the interstate is like 19 only a little better, Louisville and Philidelphia have a full craft section and aren't a bad drive if you are heading north anyhow. There is a Jo-Anna's too, and that fabric shop where the old Sack and Save used to be. Across the road from the interstate Wal-Mart.
Oh, and now the Wal-Marts in Starkville, West Point, Tupelo, and I think but do not quote me, Amory, Fulton, are fully equipped craft centers.
I hope this helps you out! I know I sound crazy, but I travel around a bit, and like to know where I can get supplies, and what is different about each place. /shrug.
If you go to Tupelo though, just go to Hobby Lobby, it will make you extremely happy. Or go to Jackson in the Flowood area. They have a Micheal's and a Hobby Lobby literally across the street from each other!