Hello Tom,  The museum you remember was in Hillsborough, North Carolina,
at the Daniel Boone Village.  It was operated by Doyle and Priscilla
Lane.  They relocated to Middleton, Vermont, in the late 1980s to open
a bed and breakfast inn and a mechanical music repair business.

Their partnership has ended, but both businesses are still operating.
I believe a good portion of the collection has been sold off over the
years, but I have seen items for sale by Doyle recently.  His latest
email was <pianoman@vermontel.net>.

Dan Wilson - Musical Box Restorations
North Carolina