I'll second that idea on Durafelt. Cutting wads from old hats, belts, etc, might be fun but the results are not uniform, so if you are trying for accuracy, get some wool felt from the link above.
As for the lube, I agree with many that say avoid petroleum products as they get gummy: like vaseline and canning (parafin) wax.
I'm not sure of an exact lube recipe, but I've found 50% beeswax, along with Crisco, veg oil, maybe neatsfoot oil or Canola work good.
I cut the wads, put 50 in a small glass (like an old 8 oz Poupan mustard jar, with the lid off, slobber in some lube, microwave on high for 30 sec, and see how the wads absorbed the lube. I like the wads to be free to shake about, rather clung together by the lube.
BP shooting is not an exact science, for which I am thankful. It allows for individual experiments to determine what is best for them.