So, I incorporated a whole bunch of things and I finally got it to work!
This is my practice block, so I always use an opposite coloured thread so I can see what I am doing!
I had to stop about 3 stitches BEFORE the 1/4 inch seam in order for it to lay flat.
Once I sewed the triangles together to make one square, I could iron those seams closed (all going counter-clockwise - thank you Krista!).
However, once I joined the four squares together, I had to iron those seams open.
My only concern is that I have a bit of hole in the middle of the block (nothing major, you can't see it, but you can put the tip of your seam ripper through it ...
I'm hoping that once it is quilted together it won't matter ...
Here's some pics!
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It's pretty flat compared to the first picture, and I will have no problems sewing through the middle.
Thanks so much everyone for all the input! I'm pretty sure I combined about 7 people's suggestions just to get it to work!