This is by far the best tutorial for making continuous bias binding that I have found. It's kind of hard the first time, but after that it's a piece of cake. There's no waste, you use the whole piece of fabric, and a small(1/4 or 1/3 yard) will make a LOT of binding. It's wonderful for plaids or stripes. This is how I do all of my bindings.
http://piraterodgers.com/tutorials/cbt/index.htm
Cari