What a gorgeous quilt that is! Here's a picture for anyone who is wondering, as I was.
http://www.gloriouscolor.com/store.php?cat=237
In general, you only need to turn under the portion of the applique that will be exposed when it's completed. Anything covered by another piece of fabric is left alone, sometimes basted in place so it doesn't move around. I can hardly wait to see your finished quilt!