Well I called up Outalaw and they were great about it. They explained that the cotton was used for tuning and such and that it was an important part of the sub.

They told me to let them know if any more cotton comes out, and if it does they would exchange the woofer for me, free of charge, they'd even pay for shipping charges.

Outlaw seems to take a lot of pride in their subs, and so they should.

I'm very happy with the performance. It's a great sub.