Blanket binding is usually a satin-like fabric that is pre-folded to finish about 2 inches wide. Basically you are expected to enclose the blanket edge and machine sew near the edge of the binding, attaching both sides at one time. Blanket manufacturers have special sewing machines to feed everything very evenly and keep the stitching line where it's supposed to be. I think it would be very hard to do this well at home, especially since the binding fabric is very slippery.
I do not like to use purchased narrow binding on a quilt.
Most of the quilt instructions you will find online and in books describe the "double-fold" binding technique.
Here is a Youtube video that shows a way to attach binding completely by machine. However, this is only one of many good ways to attach binding. It's hard to see, but she is attaching a strip of fabric that has been folded in half, wrong sides together. In that first step, she is sewing the raw edges of that strip to the raw edge of the quilt. Most quilters prefer using this double layer of fabric for binding because the binding gets the most abuse from usage.
http://www.youtube.com/watch?v=wprg5vzkuGw