if your squaring for quilting then read on, if you are squaring for garmet sewing, I have no idea but may relate????
what you are trying to do is get the weave of the fabric cut square to the end of the piece of material, so yes you line up the selvegages and cut across it... but remember to look at the pattern printed on the fabric too, aometimes it's not quite square with the fabric itself and if you are using plaids or lines, then it would look akward to me cut square in relation to weave, sometimes you give up the grain to get the pattern.
if you have selvegaes, you can line them up but be sure to also look at the individual threads and use the thread to cut on, that's what you will do with the fat 1/4's.
if you are rotary cutting a bunch of strips, you may cut a few or a lot then resquare the fabric because you may get off line slightly and it all adds up.
you are not 'blocking' the fabric like I think in knitting and crocheting, making the fabric becaome the shape you want, sometmes you will have to tug and prod a little but only slightly.