What a neat project. How bad does it smell and how much does it bother you?
My nose is sensitive, so I'd have to wash it first. Do you have grass you can lay it on to dry it?
I ripped apart a friends vintage baby quilt once. Reworked the squares, added sashing, borders, new batting and back and quilted it. I was scared to death to rip into it, but it turned out great and my friend loved it!
Jump on in there!