Karla, I just got a book on ebay: The Illustrated Guide to Vintage Quilting by Sandra Hatch that tells all about how to restore old quilts. Here's a brand new copy for $5.95. I would get this and see what you can do.
http://cgi.ebay.com/Illustrated-Guid...item4f616c50e2
Also, here's a article about restoring old quilts. There are lots more out there too.
http://www.quilthistory.com/repair.htm
Good luck!!