I read that you already got most of what I'm going to reply, but I'll add my $0.02 anyway...
Harbor Freight has some incredibly inexpensive punches that do seem to work well thus far. Otherwise, you can probably find an appropriate sized brass cartridge case and make your own punch--yes, it does work and the edge is very sharp if you're diligent when making it.
I buy the same kind of "floppy" sheets of felt that everyone else is talking about, but then I starch them with Argo Gloss Laundry Starch. It makes them fairly stiff (not enough to break), and the punch will work on them pretty good.
Then it's up to you to use your favourite lube (generally I use some form of Bore Butter or Wonder Lube), either BEFORE you punch them out or AFTER punching them out ... sometimes it works a little better doing it different ways.
I keep the lubed wads in a piece of that lightweight plastic tubing from Ace Hardware. I don't think it's PVC... wait, I'll go look...
1/2"CTS-5/8"OD Zurn Pex for hot/cold potable water
(This holds the .44/.45 cal wads nicely.)
It's also available in 3/8"CTS for the wads that fit the .36cal revolvers. (but the larger size tubing CAN work for both size wads).
I use corks on both ends and use a piece of wooden dowel rod to push the wads through as I need them.
It probably sounds like a lot of effort and expense to get things setup like this for making your own wads... but those factory wads can get pretty expensive, and it adds up quick if you do any significant amount of shooting.
Even with using the wads, I still put some lube/grease over top of the ball. That extra bit of lubrication seems to keep the gun operating longer before things "gunk up" and need wiped off. I use a small syringe to put the grease (sparingly) around the outside diameter of the balls where they contact the chamber walls.
I don't know if doing things this way really makes a difference on chain-fires (and I really am NOT trying to start that topic up again), BUT I haven't had a chain-fire in over 20 years, and the gun keeps functioning better and longer during shooting sessions.
Good luck on your wad making!
Regards, and shoot safely!
WV_Hillbilly