I went to San Francisco over the weekend, and ended up getting some really great bookbinding supplies at Arch (located at 99 Missouri, between 16th and 17th Street - for the curious). It was really the best art supply store I've ever been to, with a thorough selection of paints, papers, waxed linen threads, and crazy stuff (I ended up coming home with a box of bandages that look like strips of bacon) - I highly recommend the place. Plus, they carried Japanese bookbinding drills that undercut the cheapest prices I've seen on the internet by 50 percent! Great stuff.
I've already made one paperback perfect bound journal that I'll post pictures of soon - I can't wait to try making a hardback book - my next project awaits!