Thanks for the info. :) I was just at Joann's and got several things I need but the washaway didn't look like what she used. The one described as paper-like that doesn't really dissolve but falls apart is correct.
On her videos she uses the Elmer's purple glue stick on the edges of the paper and then irons into the back of the fabric. She says it stiffens the edge since it is a starch product. She then uses another application of the glue stick around the back side of the seam allowance, then turns it over the paper edge where it gets glued down. Heat set again. It certainly looks like it does a good job of turning and stabalizing the edge for machine or hand applique.
Basically the same as using the freezer paper and starch method but you don't have to take out the paper and you use the glue stick instead of starch.