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Ok, here's an idea that combines a few of these. Put each skein into a knee high nylon (you can get them really cheap at the Dollar Store), wash them using baby shampoo (don't see why that can't be done in the washer with just a little shampoo), then clip them each to the clothes line to dry in the sunshine! I have a bunch of yarn too that I've had for years and I think I"ll start doing that today!
plain ole sunshine cannot be underrated, as part of your solution.
look for other feedback to use in conjunction. and good luck!
Put yarn in air tight container (plastic bag, tote, ect.) Place 2 or 3 tablespoons of fresh (dry) coffee grounds (right from can or bag) into 1 or 2 envelopes , seal envelope and put in bag with yarn. I have used this for musty clothing, material and yarn. Coffee absorbs odors.
Hi..I put the yarn in the bags you get onions in and tie them ...I wash in regular laundry soap but I add about a 1/4 cup of baking soda to the wash...then I put them in the dryer with a dryer sheet....good as new....I have done this many times.
Try storing the yarn in an airtight container with some newspaper for a while.
I had some musty smelling yarn, I put it in plastic bags added dryer fabric sheets , tied it up for a few days, came out smelling just fine, have used it for a afghan.
I had that same problem with some acrylic yarn in skeins. I removed the paper bands, saving one for amounts and content as well as washing instructions for finished knitting. Put a rubber band around each skein and put skeins, a few at a time, in a couple of those nylon bags they sell for washing delicates. I got mine at the dollar store and they are large [11x15"](or use the old nylon idea in the previous post). I washed and dried them in the bags and they came out as good as new.

I think I read some where to hand wash your yarn with baby shampoo and lay flat to dry. I would check out diynetwork.com. I bet you could find something there about how clean it if nothing else works.
If the yarn is aryclic you can put each skein in a knee high nylon tied off and wash and dry it in the machine. If the yarn is wool I would wound it into a loose skein tie it off so it does not get tangle and hand wash. Here a website that will help http://www.az.com/~andrade/knit/thrifty.html
Patricia