Try to get Nancy Lee Chong's DVD
2 Fabric Applique Quilts. You can order it online from Pacific Rim Quilt Company:
www.prqc.com She is an expert in this area. Her DVD is great and you will always have it.
She did a presentation and class for one of my quilt groups here in Phoenix. She is awesome.
The secret is folding the background material and then the applique and precisely positioning the applique. Then baste the applique in place about every 4" or so, I think it was. A form of needle applique is used.
Most of the quilters used large hoops for doing the quilting. Some just plain are used to hand quilting and prefer no hoop. Individual preference.
If you can't afford the DVD maybe you could buy it with a couple of friends and share it. Or ... you could try interlibrary loan at your local llibrary.
ali