I found these at Wally world today for a dollar for eight towels. These are more of a novelty than anything but they are very compact just don't get them wet until you are ready to use them.

http://www.eztowel.com/index.php
http://www.uscav.com/productinfo.aspx?productID=16616&TabID=548

EZ Towels are durable, full-sized towels made of 100% Rayon. EZ
Towels come compacted in a convenient tablet size, all you need to do
is add water and watch it grow! Once the EZ Towel is activated,
simply unroll and unfold and it becomes an 8 1/2 in. X 9 1/2 in. towel that is ready for use.
EZ Towels are soft, durable, and bio-degradable.

Great for home, office, restaurants, school, daycare, camping,
fishing, and more!

Cool idea but it kind of defeats the towels part; it is wet......without any sanitizer or anti bacterial etc.
I tried some and they were pretty flimsy.
You got to love the vacuum packing.
Bill

I really like the Lightload towels. Haven't tried the full size ones yet.

http://www.rei.com/product/733409

Would make good tinder, though.

I bought some last night and thought I would try the PJ on them, they don't absorb the PJ at all, to compressed for that, I did however discover that they can be unwrapped easily enough so you can use them dry, and as far as using them for tinder that didn't work either, I even unwrapped a little sort of like a wick and still they seem to compressed, so either use them the way they were intended or unwrap them and use them as tinder or a dry towel, which BTW is rather small.

Just my 2 cents worth

Rayon makes good tinder?