Gaigai,
Thank you for sharing your memories & fabric with us. I'm old enough to remember fabric fron 5 & 10 being $.39 a yard. Lots of good suggestions here. may I suggest a mini quilt as was suggested by Rhonda and incooperate it into a shadow box including other things from your grandmother, especially the small things that get lost so easily. i'm doing that with some of my mothers things for my kids.