staystiching

Well, this is the way it goes: I just began my t-shirt, and already I need a little help. I'm working on the hotpatterns.com plain and simple fitted t-shirt (my version will be short-sleeved and boatnecked) out of a supersoft jersey print, and in the very first step, they want me to "staystitch around the neck edge to prevent stretching." Other seams involve staystiching, as well. This is my first time sewing with a knit fabric (my worlds are colliding!), so I want to be certain I know what I'm doing! I mean, I don't know what I'm doing, and I want to be certain I ask for help when I need it!

I've looked up staystitching in my Reader's Digest Complete Guide to Sewing, and from what I gather, I'm to stitch a 1/4" in from the edge of the fabric, and only a single piece of fabric, anywhere there is to be a seam. Is there a particular thread tension that works really well for this? Am I better off doing it by hand? Do I remove the staystitching after I sew the seam? Should I also baste the fabric together after the staystiching but before seaming to further prevent stretching or is that going overboard? Thanks so much for any clarity you lot can give!