Hammer:
If I am looking at the right photo on the site you referenced you would use 3/16" lace and punch 3/16" holes on about 5/8" centers. I'm just guessing here so do a little experimentation with the hole spacing. Anyway, to create the "X" effect just pass your lace through the top and out the bottom until you reach the end of the first pass. When you reach the end just continue doing the same thing in the other direction and that will "X" the lace.
I hope this makes sense, I've been on my bike all day with no ear plugs and my ears are ringing so loud I can't hear myself type!
Another good resource is the book, Encyclopedia of Rawhide and Leather Braiding. There are several edge braiding tecniques in the book that would cover the pan edge and still give the over all "X" efffect. Also, check this site out; http://www.btinternet.com/~kingsmerecrafts/page96.html , there are some good round edge lacing techniques described and depicted. You will have to dig around the site a bit to find what you are looking for but it is there.
Arturo