I would opt for at least very healthy quarter inch seams--personally I use 1/2 inch with flannel. I wonder how you manage shrinkage with precuts??? If I am using yardage, I prewash flannel because it does shrink, especially when put in the dryer. Press to side works fine. And yes, you can free motion quilt the finished quilt. Tying would be fine, too. Just depends on your preference.