I have made several items out of the "Square Dance" book.
2) I used a double layer of template plastic to make the template -- it is still possible to "shave" the edges with the rotary cutter, so careful is good. It worked well -- I can't find the table runner right now but it is stunning.
3) Yes, I starched to hold everything stable.
It took me longer than I anticipated to make the table runner since you have to piece everything, then cut it and piece it again.