Shellie and Michael Lackman at the Organic Clothing blog have a great run-down on the processing of Bamboo into fiber and fabric including lots of great details about the not-so-eco-friendly chemical process. The only thing missing from this article? Links or names of companies doing it right–either processing bamboo as linen, or using some of the newer less caustic methods (like modal) of making the yarn. Manufacturers rarely release information about their practices, but I think it would be in their best interests to be open if they are in fact using more eco-friendly processing.
The Lowdown on Bamboo