There are several tools designed for the purpose of making the holes on the edges evenly spaced. There is the Skip Stitch blade, EdgeryDoo, Edge Perfect Blade, and the Simplicity Deluxe Rotary Cutting Blade Blanket Stitch. There may be others. If you google any of these you will find tutorials and illustrations for their use and projects to use them with and also directions for the edging patterns. In addition there are examples at Project Linus and patterns. I made several drag around projects for my grandchildren when they were little. Now they are getting big enough to start requesting quilts. There are also some leather working tools that I would think you could use for the same purpose. I know my dad had some that made evenly placed slits in leather when hit on the top with a hammer. Don't know the name of it but if you have access to something like that you may try using it instead of investing in one of the blades. Ann in TN

Thank you for the idea. Sounds like fun.

How neat is that! I never thought of crochet as an edging. I'll have to try that. Thanks for the idea.

go to http://www.youtube.com/watch?v=ZtLkkJs-kXI for a video (project linus ladies) on crocheted edge blanket using the skip stitch blade (i bought from joyce middlebrooks whose husband invented this blade in two sizes).
there is another web site www.crookedbrook.com.....they sell embroidered fleece baby blankets. i actually did the crochet edges on four of the blankets they have it posted on their site. don't think me a bigot, but kind of tickles me to see my work.

I have made several of them back in the days when a single layer of flannel was much thicker than it is today. Now I would only use a double layer of flannel and tack it several times in the center so it wouldn't get wonky after washing.
My favorite "go to" baby gift for co-workers was a large terry cloth square with a crocheted edging. Most baby towels are only large enough for an infant and my towels were large enough to get a child thru kindergarten.

Paniac sent me a couple of these for our St. Jude's Auction. They are so neat!!! She even crocheted little booties and a cap to match! Get her to tell you how its done!!! Give us a tute!!!!

I have always used two layers of flannel!

I bought my rotary blade like that from Project Linus

There is one tip that I think is worth mentioning:

I take a saucer and cut around it with my rotary cutter on the corners. It is much easier to crochet the curve than trying to crochet the square corners.

I only use one layer of flannel. I jus saw some of my blankets than have been in constant use for almost two years, and they still look really good.

I do use the Skip Stitch on fleece, but on flannel, I just poke my crochet hook through the flannel as I go.

I've made many, many flannel receiving blankets with crocheted edges. They make wonderful shower gifts.