I use muslin(very fine cheese cloth) from "Spotlight". It's like $1.50 a metre(square metre actually). Rinses well and if it dont chuck it and get more...ever had an arguement from the missus for going to the fabric/craft store?????.
when I did use it I just spun it SLOW so that the twist on the top would sqeeze out the liquid a little.
muslin bags the way to go.tried the old panty hose trick but takes like forever to get any dye out of it.works though but the muslin is the go.
just remember to stir regularly when on the boil as my last effort resulted in a burn on the bag which ended up spewing grain outa the hole i made.not very nice at all.