I wash mine in cold water, and honestly, they don't smell. I dry mine, and I haven't had a problem with their shrinking since I started using a thicker fleece. When I used some thinner fleece, I did have a problem, but as long as you're using quality fleece it shouldn't be a problem.
Many fleeces actually tell you to wash them on warm, so you shouldn't have a shrinking problem, but if you're worried, just hang them to dry and that should stop shrinkage.