I've always been a fan of finishing quilt binding by hand. I sew my binding to the front of my quilt using a machine, and then use an invisible hand-stitch on the backside of the quilt for a nice clean finish. Practically speaking though, this takes a lot of time. And yes...you spent a lot of time making the quilt so why not spend the time sewing the binding by hand? I (usually) agree, but sometimes quick is good. Also, machine binding can hold up a little better in instances where the quilt will get a lot of wear and tear - baby blankets, for example, will be heavily used and washed over time and machine binding may hang in there longer under that kind of love (abuse).
For the baby quilt I've been working on, I decided to add a machine binding with a flange. I think this is a great way to add a machine binding without it looking sloppy, and it gives the quilt a little something extra.
For a flange binding, you'll be using two fabrics - a main binding fabric and a flange fabric. I chose a red & white scallop print for my main binding and a black & white wood grain print for my flange fabric. I cut my main binding fabric the way I usually would, and cut the flange binding fabric .25" wider than the main binding fabric. It may seem counter-intuitive to cut the main binding thinner than the flange, but I promise it will all make sense.
Sew the main fabric and flange fabric wrong sides together using a .25" seam allowance.
Press the seam towards the main binding fabric. It will look like this front and back.
Now you'll press the binding in half, just as you would with non-flange binding. On one side, you'll be able to see the main and flange fabrics, and on the other, you'll only see the flange fabric.
You're going to attach the binding to the quilt on the back side of the quilt with the flange fabric facing up.
I'm not going to cover how to miter your corners in this post - I'm assuming you've bound a quilt before. If you haven't and need basic info, here's a great tutorial for beginners.
Once your binding is attached to the back of your quilt, fold it over to the front of the quilt. You'll be stitching in the ditch - sewing where the flange fabric meets the main binding fabric. This will keep your stitching even with the binding on the backside and nearly invisible from the front of your quilt.
While the binding stitches aren't invisible on the backside, they're even with the binding and if you've chosen your thread color well, they blend right in.