if you go to you-tube, there are a number of tutorials on binding.
http://www.youtube.com/watch?v=INh6sVKJRrA&NR=1 is one, and there are others.
I personally stitch to the front of the quilt and turn and stitch by hand to the backing, and I use a 2 1/2" bias binding folded in half which I press with starch before I use it.
If you decide to stitch by machine, which I use on utility pieces and shop samples that have to be done in a hurry, then I use the sharon Schamber method. She has a free tutorial on her web site and it is a great piece to watch and learn from.
http://www.sharonschamber.com/free%2...ng%20Class.pdf
If you are entering a quilt in a judged show, binding is very important and they will expect it to be stitched to the front of the quilt and hand sewn to the backing, with perfect mitred corners. If you are just quilting for your personal use, do what is easiest and most comforatable for you and still gives a nice result.
Good luck! :-)
Lisa
Quilter's Paradise, NY
www.quiltersparadiseonline.com