I use Pellon's Wonder Under 805. I use a small zigzag and I sometimes put some washaway stabilizer (Sulky Solvy) behind it so that the stitches don't gather the fabric. There's no gathering if I use the washaway but a little happens if I don't. I don't normally starch, so ymmv.
Baby girl's quilt is 2 years old now and entirely raw edge appliqued. It has been washed and dried many times and there has been (what I feel is) minimal fraying. I didn't back this with washaway so there's a little bit of puckering but child doesn't care
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