I'm making a postage stamp quilt right now that requires 1 1/2" pieces. I'm cheating a bit right now because I'm cutting 1 1/2" strips and sewing them together, then slicing them.
I don't have all the 4,000+ pieces already so I'm just sewing as I go, as sort of a "leader and ender" project. I also figure I can buy charm packs and get 9 pieces out of each charm.