Is this it?
http://www.amazon.com/Wash-Away-Appl...dp/1571209190/
I bought some but haven't tried the sheets yet. Haven't opened the package, but the sheets look to me to be the same type of wash-away material Sharon Schamber uses in some of her books. The difference is that these sheets have a fusible on one side.
Was it Beth Ferrier on the show you saw? It's just that I had not thought of using the sheets in the way you describe, which is more like the Eleanor Burns method. The methodology on the back of this package is much more similar to freezer paper applique in that you cut out your applique pieces, iron them to the back of your fabric, cut your fabric a little larger, then turn the edge under before machine sewing.