We also carry this fabric in our store. The skunks are right-side up, when you're viewing the fabric from selvedge to selvedge.
If the finished pillowcase size is 21" x 32", then you'll need 42" of fabric plus some extra for hems and to allow for any shrinkage. So, I'd say 1.25 yards would do it.
http://www.tinyurl.com/yl2musj