I hate hate HATE when you go to dry your hands on a towel and they smell like MILDEW...yuck! I've found this trick that works fabulously!
First Clean your washer...I found a cleaner at Walmart in the cleaner section.
Run that threw your washer with Nothing in it
Second: Add your towels and 1 Cup of Vinegar NO DETERGENT NO FABRIC SOFTENER
Put on the HOTTEST SETTING, and a extra rinse
Third: Run towels through the load then when the load is done add detergent but still NO FABRIC SOFTENER. Wash on the hottest setting again.
Fourth: Immediately put in dryer and dry on HIGH then remove towels and put away. They shouldn't have the mildew smell anymore. My kitchen rags where bad and I was just going to replace them but now I don't have too!