If you are afraid of the smell returning or spores being in the squares, then let the girls bring in fat quarters to use for the Linus quilts and let them have an equal number of squares from the lady to use in wall hanging, table runner, or some such thing for them selves. They might enjoy the 'trading" and pieciing of squares for the babies.
I have two quilt tops from cotton that were quite smelly from the lady my grandmother bought them from, but I hung them on the line after washing in lemon juice and they've never had the smell come back. I use them, though, and I dried them in a hot dryer after allowing them to dry in the sun with the lemon juice solution. (yes, forgot to say I washed them in warm soapy water, too, didn't I) sorry late hours are getting to me.
Good luck and do let us know what you decide to do with the girls. I'm so into the idea of teaching them to quilt, to do the "square" piecing, I wish I lived closer I'd let them come two at a time to the house to help them.
Sharon