There are lots of ways to use tiny scraps. I am a miniaturist and I use them for minis. My cut down method makes it easy to sew those pieces together and then cut out a square from the center. Check out my tutorials. I send out free templates from 4 1/2" down to 1". Once you sew and cut the squares you can use these "Blocks" to make quilt blocks and projects.
http://www.quiltingboard.com/virtual...jsp?vsnum=1020
Also there is a crazy quilt method I call confusion but others call Crumbs. You just lay two pieces of scraps together and sew them together. Cut a straight edge and add another scrap. I sew 2 or 3 scaps together and then do several sets of these 2's and then sew the sets together. this is a great way to make crazy quilt fabrics and it is so easy to do!!
http://www.quiltingboard.com/t-30920-1.htm
You can make quilt blocks with your Confusion or Crumb fabric but I like to make projects with mine
I love to make butterflies with it
http://www.quiltingboard.com/t-36995-1.ht
Stuffed Hearts
[ATTACH=CONFIG]99054[/ATTACH]
Checkbook cover
[ATTACH=CONFIG]99055[/ATTACH]
Bookmarks
[ATTACH=CONFIG]99056[/ATTACH]
Hot pad
[ATTACH=CONFIG]99057[/ATTACH]
Butterfly
[ATTACH=CONFIG]99059[/ATTACH]
Butterfly
[ATTACH=CONFIG]99140[/ATTACH]