I recently posted on making a rag quilt with the Accuquilt Rag die http://www.quiltingboard.com/t-148577-1.htm
I finished this in time for the Michigan-Notre Dame game last Sunday!!! (Go Blue!)
I did do each block seperately (2 layers of flannel and the cotton) which made it nice being as they were already ragged. One suggestion I have is that when you are cutting more than one layer like I did, make sure you have the cotton layer on the die, not the flannel. The flannel really got stuck down in the die and I spent a lot of time digging out the threads before I could cut another set.
Another problem I found was that I used a golden yellow fleece for the backing and the blue flannel that I used for the batting pilled all over it. Probably could be removed with a lint brush but it's just the back so I'm not too worried about it!