The Laws of Rolling the Torah Scroll. Containing 8 Se'ifim:
It is forbidden to hold/touch a Sefer Torah (Torah scroll) with one's bare hands, without a kerchief. Rem"a: And there are those who say that the same applies to other sacred writings (Agur and Tosefot - first chapter of Tractate Shabbat), but this is not the custom; and it is good to be stringent if one has not washed his hands; but regarding a Sefer Torah, even in this manner it is forbidden. (His own opinion and the Agudah) The greatest among those who received an aliyah does the rolling, and the custom is to buy [the privilege] with a large sum of money to make the mitzvah beloved. Rem"a: There are those who say that if the Torah cover is made of linen on one side and silk on the other, it is necessary to turn the silk side towards the scroll and to roll it [around the scroll that way] (Mordechi - end of Tractate Megillah), but that is not our custom. [Beit Yosef - siman 123]. The Torah scroll should not be wrapped using a torn material if there is another [un-torn one that can be used]. [Mahari"l]. And we do not make a Torah cover from old things which were initially made for a common use; see further below in siman 153. [Agudah - Tractate Menachot; Teshovot Mahari"l - siman 114; Beit Yosef; Rashba"tz]
Anyone who wants may purchase [the privilege] of handing the cover to the one who rolls the Torah scroll, and the one rolling may not protest because even though he purchased the [privilege of] rolling, he did not purchase [the privilege] to take them. [And similarly, in those places whose custom is to purchase [the privilege] of removing and returning [the Torah from/to the ark], the prayer leader may not protest, because that [privilege] is not applicable to the chazzan]. [Mordechi - end of Tractate Megillah; and Ohr Zaruah]
The one who rolls the Torah scroll should do it [in such a way] that [the middle] is lined up with the seam so that if it rips, it rips along the seam.
The one who rolls the Torah scroll should roll it from outside; and when he fastens it, he should fasten it from the inside. Rem"a: Meaning: when the Torah scroll is standing before him, the writing should be facing him, and he should start rolling it from the outside. And when he finishes rolling it, he should fasten the end of the cloth on the inside so that when they come to read from it [the next time], they'll find the fastening on the inside and they won't need to flip over the Torah scroll [to unfasten it]. (Tur and the Rosh - end of chapter "Bnei Ha'ir"). And it seems that all of this is when one person does the entire rolling [process]. But nowadays when the custom is that one person raises [the Torah] and another person rolls it, the writing should be facing the one raising it. And that is the custom, since he (ie. the one raising it) is the main "roller" and he is the one holding the Torah.
It is better to wrap the cloth around the Torah scroll rather than to wrap the Torah scroll by rolling it around the cloth.
One who rolls the Torah scroll while it is in it's case/pouch is making a mistake.
The Maftir may not start reading until they finish rolling the Torah so that the one rolling shouldn't be preoccupied and will be able to hear the Haftarah.
On a day when two Torah scrolls are used, they should not open the second one not remove it's cover until they roll up the first one. Rem"a: And they should not remove the first one until they placed the second one on the table, so that they do not get distracted from the mitzvah. And they should take out both Torah scrolls at the same time, and they should hold the second one until after the reading of the first one. (Ohr Zaruah in the name of the Yerushalmi)