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Does it matter if you cut the material on the bias or not? Which way will keep it from fraying?
Cut length-wise, not across
When you cut on the bias (45 degrees from The selvage) you prevent fraying.
Depending on the fabric, you might also have issues with it wanting to stretch.
I have never made a rag rug so I would need extra help with instructions.
Maybe you need some help with other matters when making a first rag rug:
here is info from one sewer..
Cut the strips with the grain of the fabric and not the bias (or diagonally for you non-sewers) because this helps to not stretch it too much.