here's a list of links to free tutorials. none of them covers all the bases of either hand or machine applique, but they are among the least lousy i found this morning.
http://www.quilterscache.com/StartQuiltingPages/startquiltingfour.html
http://good-times.webshots.com/album/562234447pKnxdt
http://www.quiltersbuzz.com/2006/04/mastering_the_a_wordwith_a_tut.html
http://barbarabrandeburg.typepad.com/photos/easy_applique_tutorial/buttonholestitch_1.html (interesting method for fusing the piece to be appliquéd onto the background)
http://sewthatsit.blogspot.com/2007/08/freezer-paper-applique.html
http://disdressed.blogspot.com/2006/04/tutorial-hand-stitched-applique-with.html
http://www.craftster.org/forum/index.php?topic=76089.0;topicseen
http://www.hgtv.com/hgtv/cr_quilting_other/article/0,1789,HGTV_3305_1389996,00.html
http://www.hgtv.com/hgtv/cr_quilting_instructions/article/0,1789,HGTV_3302_2757688,00.html
http://www.hgtv.com/hgtv/cr_quilting_instructions/article/0,1789,HGTV_3302_3351952,00.html
http://www.hgtv.com/hgtv/cr_quilting_other/article/0,1789,HGTV_3305_1394022,00.html
http://www.hgtv.com/hgtv/cr_quilting_other/article/0,1789,HGTV_3305_1392247,00.html
http://www.hgtv.com/hgtv/cr_quilting_other/article/0,1789,HGTV_3305_1391569,00.html
http://snippetsofaquilter.blogspot.com/2007/08/applique-method.html
http://www.needlepointers.com/ShowArticles.aspx?NavID=712
please feel free to add questions to this thread or to send me a pm. :P