http://www.youtube.com/watch?v=axDBl7lJuJs&NR=1
There are several youtube videos on needle-turned applique. Just need to do a search once you get to the youtube site. I put the link for one from EllenQuilts above. Also Sharon Schamber has an interesting new technique on youtube.
I don't use a hoop. I do use either a straw or millener's needle (long and thin). I have done needle turn both with the freezer paper on top, the freezer paper on the bottom, and without freezer paper. My Hawaiian and my Baltimore Album pieces are basted on to the background, and on the large pieces that I am appliquing down, I only cut my seam allowance for the needle turn two -three inches at a time. That really reduces the fraying to almost nothing. My seam allowance is 3/8" down to 1/16" again depending on what I am doing. I only turn the seam allowance under enough ahead to take 3-4 stitches, and it is held under with my thumb. I use YLI 100 silk or Aurifil 2 ply, or Bottom Line. Silk just melts in to the fabric and is strong. Cut your thread only about 18". My stitches are about 1/16 - 1/8" apart - again it depends on what I am stitching. When I get to a point or an inside curve the stitches leading up to and then away from "the inzie or outie" are closer together to give that area stability. You can pm me and I would be happy to answer any oher questions you might have. Oh yes, Elly Sienkiewicz has a fantastic book called "Applique 12 Easy Ways". Well worth the $ if you can find one (I usually try Amazon under new/used.)