Finishing Knitwear

[blackbirdblues]

Okay, I have an old knitted blanket that I want to turn into a dress. However, I'm not sure how to keep the fabric from coming unraveled after it's sewn. I could hem it, but will that hold something as bulky as knitwear? I could also try to refinish the hems via knitting but I have no idea where to begin learning how to do that. Currently, my knitting skills are basic at best.

Any advice or useful sites?