For sure sew with at least 1/2"... better 5/8" seams. Ask me why I know. :o

Since this velvet was originally clothing it will most likely wash nicely.

I also have found that upholstery velvet washed and dried beautifully. Even pieces several yards long. I found that I could only do one really long piece at a time in the dryer if I wanted to have it come out dry and not wadded up. The shorter pieces (3 yards or less) I could put two or three in at a time. This fabric is 100% cotton and sort of looks like canvas on the back. It is used for table draping as well as like curtains on our booths at Faires. At this point it has been washed either three or four times. Do have to be sure to clean the lint trap after each load (and in the case of one of the really long pieces, half way through ). Love this fabric!

There are different kinds of velvet -

Rayon velvet - I haven't done enough with it to give a really informative answer - some of it crushes easily and is very heat sensitive
Cotton velvet - also known as velveteen - it handles a lot like cotton corduroy
Upholstery velvet - like mom-6 mentioned -

I think all velvets are 'directional' - the same piece will look like different shades of the color when the directions are different (nice when intentional - not so great when it was an 'oops')

I have not tried this, but just cutting squares should work. Sometimes, however, velvet can be slippery but I saw a craft show where the demonstrator used tissue paper under the velvet to help keep it from slipping all over the place. It might be worth trying on a couple of squares just to see what happens and it might save you from a lot of aggravation. Hope this helps.

All great tips, can't wait to see the quilt or quilts!

I have been saving velvets for years to make a crazy quilt tablecloth that I saw in some magazine long ago! I have been too nervous about how to even begin so you guys have helped me a lot! Thank you once again :) I was seriously worried about needing to wash it. I also wondered if the seams were serged together with different fun stitching done on top, would it work? Maybe it's time to try a small one first?

I would not normally suggest this, but if you have a serger, I would serge all the seams to help with the fraying.

Ironing velvet can pose problems. There is something called a needle board that can help keep the nap from lying down when you iron it. Maybe some of the newer velvets don't do it. I remember going to a high school semi formal, with a guy I didn't know very well. We danced, and the usual high school stuff. After the dance I took a look at my dress, a red velvet top with a pleat in a white fine fabric. Anyway, on the back of my dress there was a handprint where he had held me while dancing. I guess he steamed it into the dress!

I am so jealous. I am in the process (a long time!) collecting fabrics for a crazy quilt. Does your sewing machine have any fancy stitches? If so use them to top stitch the seams.

I would also zigzag the edges of each seam to perhaps defer some of the fraying. A crazy quilt of velvets is one of my future projects. Keep us posted, I will hopefully learn from your experience.