I've been making my own home made fondant mostly because I'm too cheap to buy the wilton stuff, but it is true that the wilton fondant tastes terrible.
the recipie I use is as follows:
1 cup water
1pakage unflavoured gelatin
cook to soft ball stage, pour out onto a marble slab or shallow pan greased with 2 tablespoons white fat, allow to cool just enough so that you don't burn your hands when touching it. but while it's cooling, try to have it remain apsoloutly still, vibrations can cause crystalization. then scrape it inward untill it starts to harden, then knead it for a long time. I put it in my bread machene and set it to knead because I'm lazy. you may have to add more water, or powdered sugar. I roll it out between two plastic sheets just because it's a bit more tender than bought fondant.
I think what gives it the bad taste is the substances, such a gelatin and glycerine that give it the stretchyness. mind you, this fondant still is quite plesant compared to the wilton kind.
if you don'y need it to stretch, then I omit the gellatin and teh glycerin. The result is smooth and creamy and fudge-like. it doesn't cover cakes well though, the sides will have wrinkles in them, and it tears rather easily. but boy is it good eating. I was home over spring break, and I made a mint-chocolate cake, and I made this fondant and flavored it mint. The left over fondant from teh cake was eaten like candy, not only does it taste better than wilton fondant, but the texture is nice for eating too.
But if you want to shy away from fondant all together, over easter I made a lamb cake and instead of fondant, I covered teh face and legs with white chocolate, then with the leftovers I made roses.
I melted 1 lbs of chocolate and 1/2 a cup of corn syrip over a double boiler and mixed them together. the result is chocolate that is soft and streatchy. the chocolate did get a bit of a chewy texture, but it still tasted like chocolate.
Anyway, this is probibly full of typos and gramatical errors, but I'm too lazy to look it over. so if I left anything important out, just ask.
Edit: forgot to add, that you shoudl add a touch of white corn syrip to help prevent crystalization