[aazura]

You can make a skirt from rectangles but if you want it very full you will end up with A LOT of extra fabric at the top where you insert your elastic. It will bunch and not look good. And you will also not end up with the rounded edge at the bottome as Zumarrad describes.

In addition to the bias issue, the reason the circle skirt is not hanging evenly over your hips is because your hips do not form a perfect circle. There is more girth on the sides and back than in the front which will make the skirt hang longer in some areas and shorter in others. The best way to hem it (after you've let it hang for a while) is to have someone measure and pin it from the floor while you are wearing it. To just take up 2" say all around will result in an uneven hem when the skirt is worn.