Oh, and the way I was doing it was to use the double sided fusible, attach it to the applique piece, cut, place onto the background, iron.
NOT like how they do here:
http://www.mccallsquilting.com/artic...achine_Fusible where they sew the fusible to the applique first. Is there a better tute for that method? I can't see the pictures :( And can I still use the steam-a-seam 2 Lite for this method?