These Youtube videos should help you with keeping everything lined up if you want to completely machine sew binding. Aside from the stitch shown in the video, you might want to try a decorative stitch (such as featherstitch) for the last step.
http://www.youtube.com/watch?v=wprg5vzkuGw
http://www.youtube.com/watch?v=7MRfA...eature=related