A) Is this madness? And, if not...
B) Can you recommend place to go for supplies?
Never say madness! You can ALWAYS do it yourself. It is just a matter of how much time and how well you can do it, but even the experience alone is worth it and will make you feel much more creative and in charge of your home. As for supplies for this kind of project we don't know much, but Libra Leather (259 W 30th St - 212.695.3114) has the most beautiful leather (but expensive), and we are sure some upholsterer would give you resources if you asked really nicely (you can check with Townside, they're super friendly).
If anyone has a better answer (not too hard), please comment below.... MGR