I took a class at Road2CA in January, the instructor sews the binding on the top before she quilts and it actually keeps the edges from fraying, but she does not hand stitch it to the back until the quilt is completely quilted. Her name is Jean Brown and she uses the Aunt Becky tool for hand quilting, she is great and her work is beautiful, she has a web site.
http://jeansimpressions.com/