This website has some good tips for working with silk
http://lizzyhouse.typepad.com/cherry...with-silk.html
This could be a great reference source
http://www.amazon.com/Silk-Quilts-Fr.../dp/0844220817
I am not typically a fan of serging blocks in a quilt, but as I am reading about working with silk, I think I would consider doing one with a serger. That would keep all your edges finished as you go and eliminate most or all of the fraying, which sounds like it will be a big problem. I would probably use an offset block or some type of crazy quilt block so that the seams don't have to match up. I find serging doesn't give me that 1 or 2 thread accuracy that I want when matching up block corners in a quilt.
The best idea is to make several small test projects using different methods and see what works for you.
Please be sure and take us on this journey with you, so that all of us can learn what works and what doesn't.