Hemming is my least favorite process when it comes to sewing. For me it is the difference between something coming out looking polished or not, so I try to make the process as easy as possible for myself. I do this by pre-folding my hems before I stitch up my inseams. That way I do not need to press the hem while it is a closed circle. I often mark my fold lines well before I even start sewing anything together at all.
For the Sun Day Shorts hem I mark 1.75'' fold line on the right side of all pattern pieces.
On the Sun Day shorts I like to fold the hem after the side seams are stitched up (but definitely before the inseams are sewn together). I first press the 1.75'' fold line, and then do a small .25'' fold. See below the fold lines.
After this step I like to sew the inseams (make sure your hems are unfolded, but you can tell the fabric now has a memory of where it should be hemmed).
Pin inseams together (right sides together). You should have one left and one right leg.
Stitch together 3/8'' Seam Allowance. Finish raw edge with serger or zig-zag stitch.
Turn one pant inside out (does not matter which one).
Insert short leg (one with right side facing out) into short leg with wrong side facing out.
Pin inseams together.
Press one inseam towards front, and one inseam towards back.
Pin as crotch curve as needed (matching center back and center front notches).
Stitch crotch curve together at 3/8'' seam allowance. Finish raw edge with serger/zig-zag stitch.
Turn shorts right side out. Shorts should be looking more like shorts now!
Use the pre-pressed hems as a guide to pin your hem into place.
Pin as needed. Side seams should match up with side seams on folded hem.
Stitch 1/8'' (or 1/16'') from edge of hem. Start at inseam to hide back-tacks
Give hem a good press so that it lays crisp and flat. If your stitch line looks ripply (especially on linen textiles) this can often be pressed out with an iron permanently. The fabric will receive a new from with a solid press (with steam), especially if you let the hem cool with a wood block (or taylor's clapper) pressing it flat. The fabric will cool off slowly taking its new form.