Isn't this pretty?  There are three photo transfers used in this wall hanging.	click on the thumbnail to see this photo transfer used in a small quilt.	click on the thumbnail to see these photo transfers used in a small quilt.
	click on the thumbnail to see this photo transfer used in a small quilt.	click on the thumbnail to see this photo transfer used on the back of a vest.

There are basically two different methods of printing photos on fabric, each with its advantages and disadvantages.

The first is transfer sheets. You print on these, then iron the resulting transfer onto fabric. Ami Simms makes these. Results tend to be a bit stiff. Choose photos that are clear and the background not too dark. Attach them to a piece of typing paper and have a color photocopier copy the pictures onto the paper. Use color no matter if the pictures are in color or in black and white. Copy them in reverse so any written images will come out in the right direction when they are ironed onto the material. Use a high thread count white cotton muslin. DO NOT PREWASH THE FABRIC!!! It will make a big difference in the quality of the final image. Finally iron the image onto the muslin using a steam free iron and a strong arm.  

The second method is to print directly on fabric using your computer inkjet printer.  You can buy fabric already prepared  for this purpose such as Printed Treasures and Electric Quilts Printables.  See Printing on Fabric for more information.  You can also make your own, using Bubble Jet set.   See Using Bubble Jet Set for more information.