"The CPSC exempted wool, cotton, silk, gemstones and pearls in its proposal 6 Janurary."
I know acrylic yarn is not 'wool, cotton or silk' but no one is going after someone who knits gifts or even sells items. A man in our town who sells children's furniture at local craft fairs always has...
Please read this clarification http://www.cpsc.gov/cpscpub/prerel/prhtml09/09086.html and the Snopes article dacjohns posted http://www.snopes.com/inboxer/pending/cpsia.asp before going off the deep end.
If you are very sure of what you are using, paint etc... don't worry! They are going after...