The Sleeping Comfort study, funded by Woolmark and conducted by University of Sydney’s Faculty of Health Sciences, is summarized in
A Better Night’s Sleep http://www.magniwool.co.uk/Sleep_Better_with_Wool.pdf

Study results included that wool bedding

• Ranked as most confortable in rooms at 12 and 18 degree temperatures; was “too warm” in a room at 24 degrees
• Breathes more naturally than synthetic products
• Increase the duration of the most beneficial phase of sleep known as the REM or Rapid Eye Movement sleep stage, where the sleeper is totally relaxed and most dreaming takes place
• Facilitates a comfortable body temperature – the body gets to a comfortable sleeping temperature more quickly and stays there for longer.

The complete report is available from the Woolmark Company order form here http://images.wool.com/pub/Sleep_Comfort_Report_Order_Form_290310_01.doc

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References:

1. Woolmark.  A Better Night’s Sleep Available from: http://www.magniwool.co.uk/Sleep_Better_with_Wool.pdf  [Accessed 29 December 2011].
2. American Wool Innovation Limited.  Sleep on Wool.  Available from: http://www.wool.com/Interiors_Bedding.htm [Accessed 29 December 2011].
3. Dr Chin Moi Chow.  Available from: http://sydney.edu.au/health_sciences/staff/chinmoi_chow 
    [Accessed 29 December 2011].
   excerpt: 
   1999-2000 Industry grant from The Woolmark Company $209,814 “Bedding type & sleep quality” and “Transport upholstery comfort study” Chow CM, M Thompson.