I just recieved a bunch of long fibrelanolin treated fly tying wool and was wondering if it sank or float and what patterns could be tied with it?

Have you thrown any into a glass of water yet? That would be the easiest test to see whether it floats or not.(I'm not being a smartass).
I have a gal who gave me some of her lambs wool that was a beatiful blue dun color. She had to wash it though because of the lanolin in the natural wool. It appeared "waxy" to me when it was raw and a sheepish odor. I guess according to her that the raw wool is almost impossible to dye because of the lanolin. I was told that you have to do the same thing as you do with feathers and soak them in dawn dish soap overnight to degrease them. Of course you would'nt want to do that with CDC feathers though.
as for patterns... I'd tye any dubbed pattern with it after you dye it (not knowing what color you have) there are allot of patterns that call for the grey dubbed body though. Hope this helps.
You can chop and pull the fibers apart and use the stuff as dubbing...or use them as a wing on streamers (keep it sparse and weight the rest of the fly)...or chop it shorter and use it in a dubbing loop for buggier-looking weighted nymphs...or use it for tailing material on emergers...or parachute posts or wings on mayfly dry flies or...???

I used to use a lot of this stuff. It goes by the name of roving at knitting stores, is fairly inexpensive, comes in many different colors and blends, readily takes a dye and can be obtained in a few different textures depending on the animal it came from. Synthetic roving can also be obtained and this stuff is AWESOME for wings on streamers. The best place for me (because it's so close) to obtain these materials is the Allyn Knit Shop. Google it or dial 411 for the number. It's a great shop with some neat stuff.

The wool i have, is already sorta braided and wrapped around a cardboard sqaure that has the name of the fly shop its from, i used it as a substititute for chenille and some types of dubbing at it seems to work