You're not alone. I have a piece with no emotional ties like you with your grandmother, but just love, love, love that fabric and every time I think about using it I break out in a sweat! I think you have come up with a good solution above - doesn't need to be a fancy quilt, just needs to be something that reminds you of gramma. I like Queen's idea above, narrow black inner border then more of the stripe - if no more stripe, put a red border on it.