I have an XL McNett Micronet Towel (35"x62") and carrier in my BOB, and had a chance to use it heavily while camping last week. I really like it. It does hold quite a lot of water and because of that it's best to give it a wring after the first couple of swipes to get yourself dry.
It packs in it's own mesh carrier so you can hang it on the outside of your pack and let it dry while on the move if need be.
It was pricey, but after this weekend I came to the conclusion it was really worth the expense to me.
You can go smaller, and just wring it out more often if necessary. I wanted something that would double as a shemagh if circumstances were such that I needed one, so I went for the XL size. I probably could have easily made do with the Large.
I believe it's the same microfiber fabric or very similar to a lot of the other pack towels.
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"Learn survival skills when your life doesn't depend on it."