Amy-
There's a variety of ways to wash wool. Here's a few off the top of my head:
1. Buy specific wool wash, usually from a wahm. Tends to smell very yummy, typically has lanolin already as part of the wash, but can be expensive, depending on how frequently you end up needing to wash your wool (we use wool at night, and often ds gets his cover dirty before I can get to him in the morning

so I wash more frequently than if he only wore wool without poopy getting on it).
2. Use a gentle soap like Dr. Bronner's or Johnson & Johnson for the occasional wash, and then do a specific lanolizing every few months - you can just use Lansiloh or PureLan, melt it in a small cup of hot water, and add it to your wool laundry.
3. What I do - use SportWash/SensiClean. I have been using this for about the last year - year and a half, and don't lanolize my wool at all. It restores the natural lanolin in the wool. It's fairly cheap in the long run, easy to do (no extra steps), and actually doesn't smell like anything, which I kind of like.
Also, check your washing machine - you may be able to wash your wool in there. I have a wool setting, and put my covers in there with SportWash, with cold water, and then hang them to dry. They are typically dried overnight because most of the water is spun out in the spin cycle.
If your machine doesn't have a wool/handwash setting, then you'll have to use the sink. But I've heard of mamas using only the spin cycle to spin the water out (others have used salad spinners too!) - it definitely helps the dry time!
Follow Mothering