How close is this friend to you? Is it someone you would be willing to spend a lot of time and work on a quilt? I mean, are you doing this willingly because you love your friend, or did you get this because you're a "quilter?" If you really, really don't want to spend all this time and energy on a quilt made out of "poor quality cotton" that is fraying badly and is warped out of shape, then don't. Give it back to her and tell her the reasons you don't want to work on it, but primarily that it will take far more time and effort than you originally anticipated. Let her know how many hours of tedious work you'd have to spend just to restore a poor quality old quilt. That's what I'd do -- and in fact, have done. It came out very well in the end, so follow your head on this one. IMHO.