Just yesterday, I was given a sample of photo transfer paper from my local computer shop as I have just bought a new printer - Epson DX7450!!
You print directly onto this and then iron it on, it has colour change pictures on the paper to tell you exactly when to shop ironing, as the older version didn't so you weren't sure if the colour had 'taken' so the guy tells me, he prints T shirts all the time with this paper....
You finish the print by ironing with greaseproof paper which fixes it, and you can repeat the process to increase the colour....I will let you know when I get around to playing with it lol!!!!!!