Question #1 - Do you use the glue straight or do you dilute it with water?
I do not dilute my glue, but I do put it in a bowl of hot tap water to thin the glue out. A minute before I start using it is all it takes. I use two bottles of glue. One stays in the hot tap water so when the first bottle that I am using starts to cool and thicken, the bottle sitting in the bowl of hot water is just right. I keep switching the glue bottles so I have the thinned glue to use for the whole quilt. The thin glue comes out of the tip like spiderwebs.
Question #2 - Do you have all 3 layers down when you baste right from the start like this lady does? Or do you do it slower? (just have the backing and batting down and baste that... then when that is done you add the top and baste that?)
I do all three layers at once. I have the quilt sandwich on two folding tables set up side by side on bed risers so I don't have to bend over. I glue half of the quilt at a time.
Question #3 - Do you use the water bottle and iron? if so, what does that do? Does it just speed up the drying? or what?
I have no idea why spraying it with water is necessary. When I have used the heated/thinned glue, it dries very quickly. It doesn't hurt that I have a ceiling fan over the sandwich either. It is completely dry in an hour or two.