Fairly detailed instructions, with experience-based recommendations
http://www.thevibe.net/vn/vnfaq.shtml#wrapping_mallets "Go to a yarn store and test yarns by stretching them tightly and rubbing your thumbnail across them. You will quickly see which yarns wear out easily and which are more durable. Also, look for yarns that are very thin rather than the thick bulky ones (although these can also produce wonderful sounds)."
http://www.gppercussion.com/html/which_mallets.html "The wrapping around the core softens the contact sound. To a small degree, you can change the timber of the mallet by using more or less yarn. You can also make the contact sound clearer by using a hard yarn like cotton cord instead of wool or acrylic yarn."
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http://evolutionarymedia.com/wiki.htm?HowToWrapMallets.