Hi katier--
I just always use a 1/4" seam...so that's what I account for. But I don't know if that answers your question. :lol:
These potholders are very thick--batting, thinsulate, two fabric layers, plus the binding... so maybe that's why it's not lining up? They are trimmed up pretty well.
I think I'll finish the potholder this way--because no way do I want to sew them all by hand (like I did the last time! :roll: ). So--they'll just have to look goofy. :wink: