Is there a specific reason why you want to use bias binding? I use bias only if the design of the fabric requires it (for example, I want spiralling stripes on the binding) or if the edge to be bound is curved. Otherwise it is much easier to apply straight-grain binding. If this is your first experience with binding, I highly recommend working with straight-grain binding before tackling bias binding.
I always starch fabric heavily before cutting bias strips for binding. This stabilizes the fabric so you get more accurate cuts and so the binding doesn't stretch out of shape as you manipulate it. You can also starch before doing straight-grain binding, but it is not as necessary.
Most people use double-fold binding on quilts. The double layer of fabric helps the binding last longer. Usually the strips are cut 2.5 inches wide. You iron the raw edges together, right sides out, so you have a double layer of fabric.
Here is a link to a Youtube video that shows how to do a double-fold binding entirely by machine. If you want to finish with the more traditional hand sewing, the technique is very similar. Just look for other Youtube videos to help you out.
http://www.youtube.com/watch?v=wprg5...os=nZMmElf218o