It looks like your questions about some of the terminology have been answered!
I have stenciled onto my quilt before, done the machine quilting & removed the stencil lines. I have gotten stencils at Joanns, Tuesday Morning & have made my own. I have also bought from The Stencil Company at a quilt show & here is their web site-
http://quiltingstencils.com/
They have a great selection & in their catalog have them divided up into categories like continuous, block, border designs, etc. Check them out!