don't understand this either

I would just add a backing.

The pillowcase backing is taking your backing, with the quilt, right sides together ... stitch your 1/4" seam allowance all around the perimeter, making sure that you back stitch to start, and end with a back stitch about 6 to ten inches from the beginning ... this allows you a space through which you will be turning the quilt right side out (birthing the quilt).

Thanks - I think I understand now -

Would it be possible (possible, yes - feasible?) to do the "points" ? I'd be tempted to just sew a straight line and let it go at that.

Whenever you are stitching fabrics together that come to a point, where you will be turning the right side out, as in a collar, clothing, this little quilt ... wherever you are going to have to turn the item right side out ... a tote, sometimes .. .purses ... wherever you are going to want a crisp corner when you get done sewing ...
natural inclination is to sew right to the corner, right turn, stitch down the other side ..
the two stitch technique is RATHER than making a direct right turn, actually stitch ACROSS the corner one, two, or even three stitches .. before turning direct right and sewing the other side ...
if you don't take those few stitches, all the bulk of the corner gets squished up in there, and won't flatten, hence .. a scewed corner.
Take the stitches, turn the piece, sew next side ... try a sample ... when you turn the whole thing right side out, those few stitches have given the bulk a "place to go"
I really don't understand how it all works, but I do know that it makes a better point than just doing the right turn stitching <g>

OK Well I think I will just back it but I knew I was going to have to "birth" it because it has all of those points so I can't bind it....I will just have to finish it up...DO you think Cotton will be OK? or should I find another woven? :D

Well, because this is a baby quilt, it wouldn't hurt to do that extra bit of keeping "the theme" and original shape. I am like you <g> I do not do FUSSY! but, I would probably do the points because it is small ... and, I do like the red!
If you just squared the quilt and cut off the points, what would you do with the scraps??? at least <g> with this technique ... there are NO scraps! LOL
but, doing the straight line wouldn't be a bad thing to do, either .. it is a personal preference, I think.
In an instance like this, I would try it JUST to see how it turned out. And, it isn't going to be any picnic appliqueing the squares closed that you need to leave open to turn the quilt inside out ... but, it might not be any biggey - - if one doesn't try, one will never know <g> ...
and, having typed that much, I have one more suggestion.

Forget leaving an opening on the edge ... stitch it all together, VERY carefully lift up the backing, cut a slit into it to turn the quilt through or even just cut a circle out of the back ... stay stitch by hand so that when you are turning the quilt, you aren't ripping the fabric more than what you have cut ... then, using double fusible webbing, applique either a label or an appropriate decal of some kind - - maybe even a quilt block to cover what you used to turn the quilt through ... keep in mind that after you turn the quilt, you will want to get in there and crisp those corners out ... although, using a good pin, I have been able to sort of life corners out with little or no damage to the fabric ...

Why are you saying "woven"? Cotton is woven ... Levis are woven <g> flannel is woven ... so, what is it that you are seeing that suggests this is some type of fabric other than cotton?
You CAN bind the points <g> ...
see? you have a LOTS of options! <g>

Good Idea OMak! That way all the corners will be even...I will be keeping the points. I thik that I will use it as a table decoratioin....so a label or quilt block will be just fine! :wink:

WHen you get to the binding of the points, let me know ... in the meantime, I will be looking for the tutorial I saw in the past or the pattern book I bought that showed how to accomplish it <g>. ANyway, between the two of us, we should be able to figure it out. You will be surprised at how easy it is <wave>