Can you attach a link to the exact pattern you'd like? I found a couple variations,some were a 5X5 grid, some a 6X6.
If you want to alternate them with an uncut charm square, then the basket has to finish at 4.5"
If you use one of the 6X6 patterns, like this one:
http://quilting.about.com/od/blockof...ck-Pattern.htm
then each square would FINISH at .75 inch (which is 1.25" unfinished). To cut a square for a hst, you add 7/8", which would be 1 5/8" which is just nuts. If you really want to make these teeny tiny ones, I'd cut the squares at 2", then recut them to the 1.25".