Hometown should work fine with those needles. Using a thinner yarn like worsted, knitting in garter stitch, will give you a lacey look. You can use 2 strands of thinner yarn (like 2 worsteds, or a worsted and a sportweight) together; if they're somewhat different colors they can make a tweedy or heathered look.
I agree with Jan, play around with different combinations and see what you get.
sue- knitting heretic