the 1.414 number is used in both directions- if you have a square you need the diagonal of- times the size of the square by 1.414- if you want to figure out the size of setting triangles for said square- to make it on point you divide by 1.414 make a square that size- then cut in half diagonally for your setting triangles.
also- if you have a square- which you multiply by 1.414- that gives you the size the square will be when put on point.