I've used steam a seam light and the edges fray, not an attractive look or something that's gonna last. Might I suggest freezer paper method or Templar. I use Templar. Templar is great because it doesn't melt and keeps it shape. Here's great applique tutorials and she has some free patterns as well.
http://erinrussek.typepad.com/one-pi...lique-lessons/ She does hand applique but this could be sewn by machine with a blanket stitch or a regular stitch close to the edge. Good luck with your new book and adventure in applique!