I folded my 'chutes by holding the apex of the canopy between thumb and index finger in one hand, lightly pulling the shroud lines with the other, and the canopy will "pleat" itself. Smooth that out but don't crease the folds, and then make a "Z" out of the long, pleated canopy, with the shroud lines folded in a group and one turn of them lightly around the folded canopy to hold it together. Be sure to use some type of fireproof wadding ahead of the engine, enough so the wad is double the diameter of the body of the rocket; you have to protect the chute from the heat of the ejection charge or it will melt like your first one did, then slide the folded/wrapped 'chute ahead of that with the shroud lines going in last, followed by the nose cone and shock cord. If the chute is plastic (like Estes), don't leave it folded between flights, and to keep it from sticking to itself, lightly dust the canopy with talcum powder when you fold it to load it. That technique worked for me with parachutes from 10" to over 6 feet. On the larger chutes, I would heavily dust the canopy and at deployment I'd get a nice cloud of talc which helped visualize the rocket if it was out of sight. The talc also helps the folded chute slide out of the body more easily.