I know people ask for help on doing binding all the time, but this one is a little different.
I'm wondering if there's a way to do this that will look 'right' or if I should just take the easy way out and trim off the points and have triangles at the edges instead of squares.
I like the design better with the squares and the sawtooth edge but I'm not happy with the way the binding is so lumpy at the inside corners.
This is being done with the packaged wide double fold bias tape.
Any helpful hints would be appreciated!

There is a way to do the inside corners so they don't look so lumpy. I've never done it but I'm sure you can find it if you serch the web. I would do it for you, but I'm very incompetent on the computer. Can't spell very well either. lol It's kind of like mitering.
Sue

The inside points need to be mitered just like the outside ones only it's kind of like reversing.

Here's a UTube video by the expert Marci Baker:
http://www.youtube.com/watch?v=4VGNcDoI-R8

You can do it with a facing. Cut a strip wider than the size of the zigzag portion and put right sides together. stitch and turn to the back. If you want to, you can then turn under the raw edge of the straght side and handsew.

There is a method for doing this using facing strips rather than traditional binding. You sew a doubled strip of fabric right sides together with the quilt top, sewing along the seam alowance of each little jagged edge. Clip your corners and trim the seams, and turn the facing to the back side of the quilt. You will have all the individual corners there, completely filled with batting. Turn under the facing and hand stitch to the back. This video shows it really well:

http://www.youtube.com/watch?v=lwPe_84GBfY

Thanks for all your prompt replies! I knew I needed to miter but wasn't getting it to work right. Think maybe it will behave now.

It looks lovely, and once you master the technique, you'll be pleased that you continued on with the sawtooth.

Patience will be key!

You mentioned purchasing ready made bias binding. Maybe making your own, would be easier to work with? Just a thought! Regardless it must be bias.

It's much, much easier to do the faced binding. With all those points you will go crazy mitering each one. However, you get a different look depending on which method you use, so pick the look you like best.

I wanted the additional light sage color to balance the dark brick red so that's why I didn't just do it another way.

I also liked the sawtooth edge. Next time I'm going to experiment with prairie points though!