What did I do wrong? Continuous binding
 

I followed the directions from the tute below ...

http://quilting.about.com/od/binding...g_strips_6.htm

After I sewed the tube together with one strip on each side offset ... I started to press my seam open and I noticed that because of the 1/4" seam - my lines no longer match up. Should I have offset matching the lines by 1/4" to compensate for the seam?

assuming that seam is your last join .. you needed to line up the lines before sewing final seam. i find i have to sort of roll the fabric (drape) to do this. i use this tutorial all the time. riperout and try again. gl

Yes. ;-)
Take the stitching out. now you can see the stitching line on both edges. Stick a pin thru the intersection of your drawn line and the ripped out stitching line on one edge, then put the pin in the other edge, matching the same point. I usually pin every other line.

So the tute is wrong?

I should offset matching the lines by 1/4" ... or as PP pointed out, perhaps the easy way to do it is to match the lines exactly, baste, rip, then re-match the lines at the seam line - not the edge of the fabric.

I'll have to remember this the next time I do it.

Thanks!!

Stick with this method because after a few hundred mistakes, it just started coming together correctly and it is the absolute best way to cut binding...just remember " If at first you dont succeed, scream , and keep trying :)

Getting ready to try this myself, wish me luck! I will probably be ripping out to!

Somewhere on the internet there is a tutorial that shows marking a straight line 1/4 across the what will become the bottom of your tube, and stopping at that line when marking your diagonals for cutting. I used that the first time I ever made binding this way, and it worked perfectly. Of course, I apparently forgot to book mark the site and now can't find it again for a more thorough explanation. But, when I last made the continuous binding it was off until I remembered this and marked my fabric tube accordingly. Hope this makes sense

These are the instructions I use:
http://piraterodgers.com/tutorials/cbt/

In these, you also mark the 1/4" seam so you can match the intersections correctly.

Pinning is your problem. How do you pin? You need to match the lines as you pin. Poke through your line. Now line it up with the line on the other piece of fabric about 1/4 inch down. Poke. If you aren't poking IN a line, then you are not matched up. The matching up is at the SEAM not at the edges of the fabric.