I love applique, enjoy very much doing machine applique, I use the blanket stitch and satin stitch. I like satin stitch better but use the blanket if I will be doing a big project and wanted to save some thread. I foudn that with the satin stich I go through thread like krazy. For the top stitching I use just cotton thread but I've experimenting with embroidery and comes up nice. I have also done hand applique and don't master it yet, specially the points. I have also tried reverse aplique, last I did was part of the AOTH. For all my machine applique I use fusible but end up with some stifness that I would like to avoid. Lately I am just using fusible on the edges and it is better. Once I took a class with Pat Sloan and she used tons of starch on the background and light fusible for the applique forms. The stitches come up very nice.
Have you seen the "Mola" quilts done by the Kunas? It is a very colorful reverse applique techinque. Delightfull.
thanks for sharing ideas