What about doing a pillow case turning with the edge and then adding decorative ribbon or lace to the edge? Just a thought.
I've used velvet before, though it has been forever and a day ago. If you do use this, I would suggest using some kind of stabilizer, even if it's just the wash-away kind. Velvet likes to travel and misbehave and the trick is to force it into submission before it gets naughty. ;)