This has been such a good thread, and I'm now feeling encouraged to have a go at quilting on my domestic machine. :) I'm also now addicted to the FabShop Hop...:D

I have been cutting my scraps into 3.5" squares, HST's and QST's -- even my least favorite fabrics are reduced to their base colors. I like the 3.5" size because I can make 9", 12" or 15" blocks. I have an Accuquilt go big because I have to keep my rotaty cutting to a minimum (borders and bindings). It has been a blast playing with all the colors.

A few years ago when I was looking for a bed skirt everything I looked at (new) was poly cotton. Ditto with the scrubs that I looked a recently at a yard sale. On the question of 1 1/2" squares, take a look at Bonnie Hunter's quiltville.com site. She works scrappy and sometimes with very small pieces.

I also am on a very tight budget, but have a nice stash of fabric. Fortunately, where I live does not have quilt shops so I'm not buying fabric. Most of it was purchased when living in NC, which I want to return to. So I have no temptation of shopping. When I lived in NC, I sometimes felt bad when seeing the most beautiful fabric and could not buy it. But God did provide what I needed to make the most beautiful quilts. I buy thread, blades and batting online and look for the best price. I also use old blankets for batting from thrift stores at times, depending on the project. Many good suggestions were given.