I just KNEW Plymouth Encore rang a bell, so I have been rooting through my stash, and there it is.
I have some my son wants knitting into a Dr Who scarf, we got it from the USA.
It is as I thought, a tiny bit thicker than a DK, and not quite a chunky.
Aran should be fine. James C Brett make some nice baby/kiddy yarns.
For bargain price wools, check out Kemps Wool Shop - http://www.kempswoolshop.com/ and Deramores - http://www.deramores.com/ - hope you find some you like.
Hehehe, got 2 skeins of baby alpaca here (75%) with 25% merino.
My biggest sin is 100g of Laceweight (2ply) 70% baby alpaca, and 30% mulbery silk. I just stroke it. It is destined to become a beaded shawl :)