Kassaundra - I did the 365 challenge last year (finishing it up today). Though they are 3" and 6" blocks, some have well over 100 peices involved. The 3" were not too bad (I think the worst was about 50 pieces) most of the 6" are like doing 4 -3" blocks.
I used scraps - sorted into Light (mostly with white or cream background ) and darks. The contrast turned out very nice. Unfortunately it didn't really make a dent in my scraps, but then I kept adding to them all year long too.
The one big plus I found for doing it - it really increased my skill and I learned a lot about different block construction. But then I'm still rather new to quilting (not new to sewing though).
I have not started on the last BH clue yet, but hopefully later today or tomorrow.