I've purchased (some "free") quite a few classes on Craftsy.com which I love. You can play the lessons over and over, rewind, ask questions, see what other folks are doing. It's really like attending a live class. I have found all of the instructors very knowledgeable. I just looked and they offer several applique classes. Here's a link to one that looks perfect for what you are asking about, and it looks like it's on sale.
http://www.craftsy.com/class/20-fres...13013~skjfbazx