First I will show you how to transfer a photo to fabric easily and in a kind of cheap way. You will need: a computer, an inkjet printer and a transparency film that is suitable for inkjet printers.
Choose a picture that you like. Print it onto the transparency film, either colored or black and white. Take a peace of light colored fabric (I used white). The main thing is printing emulsion, that attaches color.
Brush lightly but throughout the printing emulsion onto the fabric.
Dry it with paper towel lightly.
Then place the transparency film proper place to your fabric.
Start pressing the transparency film lightly all around the picture, like you were patting it down. Do it as long as you have all the color in the fabric. You can carefully lift the transparency film to see if all the color is attached to the fabric. If not, continue patting it down. If you notice, that some part is not so well attached, just carefully place transparency film back and press a little more.
Let the fabric dry completely. Then iron it with heat that is suitable for your fabric. Let it cool down. And then you are ready!
I made a test, because I wanted to be sure the picture would be washing machine safe. Here is the picture before washing:
The test begins... I washed pictures in 40 degrees Celsius.
And there you go! Straight from washing machine! They are exactly the same as before washing (a little wrinkled tough :)
A word of warning. Be sure that the transparency film is placed on the right side (sticky side touching the fabric) and you dont have too much printing emulsion, or you would have a picture like this....
But it´s trial and error. Maybe you might think this picture as a artistic version :D Have a try!