I'm in Marin County, north, Novato to be exact. I like being close to Sonoma/Napa, and also fairly close to SF and Berkeley. My peeps.
LYS's: Dharma Trading Co in San Rafael, and Llama Llama Knits (new!) in Novato. San Anselmo boasts a beautiful boutique-y YS called "Atelier of Marin" which should tell you something about their prices Mostly I shop at local Michael's and/or Benjamin Franklin Crafts (there's one of these right across the highway from my house: danger!)
Knitting is a lonely bizness when you keep it in the house. Say hey, you NoCal'ers!