For sensitive touch use the Eeonyx resistive fabric [1] made from spandex. For heavier touch consider a nonwoven conductive fabric [2] such as NW170-SL-PA-1500.
These fabrics are available now from Adafruit, SparkFun and others now.
Below is also a video of Diane Douglas demonstrating two of these pads she built according to the model shown at Maker Faire.
Links:
[1] http://www.eeonyx.com/pdf/EeonTex/EtexStretchLRslpa10e5.pdf
[2] http://www.eeonyx.com/pdf/EeonTex/EtexNWslpa1500Tds.pdf
[3] http://www.adrianfreed.com/category/affinity-group/e-textiles
[4] http://www.adrianfreed.com/taxonomy/term/183