I got home, zigzagged up the edges and started stitching.. Here are the results..


I tried stitching 1 over 1 (the tiny red bit), 1 over 2 (the larger red bit) and 2 over 2 (the white) and decided that I liked the coverage of 2 over 2 best. Since I'm working on ornaments right now, I decided to give one a try on this fabric - it's not quite evenweave, but it's not TOO far off, so on something small like an ornament I can pick a pattern that won't matter to much if it is a bit off and try it out.
So far I'm really liking it! Turns out that the thread count on the fabric is 40x30 in an inch - so by stitching over 2, I'm doing 20x15. The fabric is lovely to stitch on and even though it's cotton, the fibers are slightly uneven, so it has the look of linen. And I just love the color - I've been stitching on nothing but white 32 count linen for so long since that's all I have in my stash that I'm happy to try a different fabric!
I figured I'd share on here incase anyone else wanted to try the same idea out. I wouldn't use this fabric for a large piece like a HAED at all, but for small items, especially those where ratios being a little off won't matter, it seems like an ideal fabric, especially given the price - 2.95 a yard!
I'll update on here when I've gotten more stitching done and we can see whether the weave on the fabric not being even is having any major effect on the pattern. Right now I'm working on the snowman from this set:
I figure worse case scenario, he'll be a bit squished - not too big of a problem.