I cut mine 2-1/2", fold in half and press, and sew to the front of the quilt with my walking foot. I then press the binding away from the edge of quilt, and fold it to the back, and hold it in place with hair clips( but I might try the glue with my next quilt!) I sometimes stitch in the ditch on the top, but also sometimes use a blanket stitch on my machine, or the feather stitch to stitch the binding down, removing the hairclips as I go.
I like the stitches in the binding that jcrow posted pictures of...hadn't thought of using other decorative stitches in the binding. The stitches I do, I do along the edge of the binding. I had hand surgery many years ago, for osteoarthritis, and it is too hard for me to do the handstitched binding.