If it has personal memories attached, I'd fold it so it can be displayed with the best parts showing. There are coffee tables, for example, that are meant specifically to showcase an item/items. Or, cut out the nicest pieces and frame them.
I've also seen santas at a craft show that were darling that were made from cut ups (old quilts cut apart).\
A pinterest search of "cutter quilts" shows some ideas - pin cusions, stockings, ornametns, etc.
http://www.pinterest.com/search/pins...s&rs=ac&len=12