I always recommend Marti Michell's book, Machine Quilting in Sections. She shows several different ways to machine quilt on a DSM, and some of them are appropriate for tops that are already completed.
Edited: To answer your question as to whether your method would work - I doubt it. I think quilting one block, inserting more batting, quilting the next, etc. would result in a lot of lumps and bumps. But that doesn't mean you are not on the right track. If you quilt in thirds (or 4'ths... or... ) you can get the job done. The book I recommended gives lots of ideas.
Last edited by dunster; 02-20-2013 at 08:45 AM.