I googled and found this site. This stitch is called the twilling stitch and it seems to be know by other names as well.
I love the internet! what a great tutorial! I've learned so much lately by being able to follow up immediately on something like this and see the step by step process. Can't wait to hear more about this.
Thanks Glenda for the information. I have been looking at some photos of this technique online and it is quite spectacular. It really adds a little sparkle to whole cloth quilts.