Do you have pictures of the process? I need visual, even if I think I understood what you are talking about.
Your way sounds like the best one yet. I was doing lining as well but I still had unfinished seams at the top where the tape was inserted.
Originally Posted by
partsalot
I just made 3 bags for gifts and wanted them to be more finished , so I actually made a lining and a bag - turned down an inch and a quarter and peressed on each to double the casing because it was just cotton fabric - inserted the lining - stitched my lower stitch line all the way around, inserted the 2 tapes and then stitches at the top edge allthe way around and there were no raw seams and it worked great. I didn't try turning it inside out, but maybe this will help.