I always use hand quilting thread, a single one. YLI works wonderful for me, but I also use King Tut and Gütermann from time to time.

How exactly is beeswax used? I've heard it many times, but am totally confused about it.

When I hand quilt I will use a single thread. When I sew my binding I will use a double thread just as I would with sewing on a button or the hem of pants and I try to make my stitches close enought so that a childs finger nail can not get caught.

Beeswax is often sold in a little rectangle (maybe 1"x2") encased in plastic, with slots for you to run thread against it. You just pull your thread across a slot to coat it with beeswax.

The bees wax I use comes in a plastic container with slots. I thread my needle then run the thread on the needle through those slots so the thread is coated with the wax. I do it several times before putting my knot in the thread and starting to stitch.
Here is a link to a photo of the beeswax container
http://www.joann.com/joann/catalog/p...PRODID=prd2989