I have a question about this too....what about doing something (like dryer sheets,etc) to it, and then turning it right side out; am I making sense here?

I have heard of doing that, but haven't tried it yet.

Eleanor Burns has a method for simple applique patterns.
She lays the fabric right side down on the fusible that is stick side up toward the fabric and sews around the pattern that is drawn on the wrong side of the fusible. Then you cut a small slit in the fusible and turn the whole thing right side out so your seams are inside and the fusible is ready to iron onto the block.

So much depends on which applique method you use!

For fusible, I use either a blanket stitch (with doubled regular thread or single thicker thread so it shows more) or a satin stitch.

Mostly, though, I do freezer paper applique a la Harriet Hargrave. For that I use the blanket stitch with a much smaller stitch length and "bite". Some people prefer a small zigzag for that.

I have tried the dryer sheet method where you sew around the outside, slit the dryer sheet, and turn the applique right side out. It works well for larger shapes that have fairly large curves to them. I found it difficult for smaller applique shapes -- less definition and accuracy than I like. Since that is a turned applique method, I would probably use blanket stitch on it.

Satin stitch adds a lot of bulk to a turned edge, so it is probably more suitable for fusible applique than turned edge applique, although it could be used for both.

Speaking of fabric softener sheets. Has anyone use them as a stabilizer?

Well, I am as far as having turned the applique pieces using dryer sheets, and all the edges are nicely turned under now. The dryer sheets worked like magic!!! I tacked the applique pieces down with glue stick last night, and tonight I will start my first ever machine applique. I have decided to do the blanket stitch, very narrow, in matching thread colors so it doesn't show.

Wish me luck!!! I am nervous but excited to keep moving forward on my quilt. It has to be complete by Jan 27, so I have to keep going. Thanks for all your inspiration and great advice!!!