Bound edges / piping

Hi all,

I was wondering how to create edges as pictured by the King in the following image. I have two questions:

1. In terms of process, should I simply put *wrong* sides together, sew in some ribbon in the seam, fold it over and then fell it to the other side? Like a "normal" bound edge? Or would it be better to make up the edge as normal, and then add the ribbon at the finishing stage?

2. Can anyone guess what the edge in this picture actually is? I assume it's some sort of silk, it looks like it has some ridges along its length (unlike grosgrain ribbon). I'm a bit scared of buying the wrong thing as it's very expensive!

Thanks in advance!

Robbie