Added Dec 4, 2009
To prep the hem to be stitched, fold over and iron your hem in place.
You are stitching on the RIGHT side of the fabric.
Because you are stitching on the right side of the fabric, it is very important that your folded over hem be even because you won't be able to see how close your stitches are to the raw edge. You will need to use your seam gauge on the throat plate or mark the throat plate with a piece of tape where your hem should hit so that the needles line up with the underside raw edge.
In this picture, my 1-inch hem lined up perfectly with the last mark on the seam gauge on the throat plate.