Several different methods were demonstrated on a Simply Quilts episode
http://www.hgtv.com/hgtv/cr_quilting/article/0,1789,HGTV_3298_1507325,00.html
There are probably a bazillion more methods in use out there. I use a few different variations of the SQ demonstrations. The method I choose depends on whether or not there will be sashing between the blocks, whether or not I want sashing to cover the seams on the back, finished size, type of batting I plan to use, etc, etc, etc.
I never hand-stitch any of the closing seams. Waaaaay too much like work. Why stitch by hand when you can use an embellishing machine stitch? Faster and fancier - like you "planned" it that way. LOL