I assume you're talking about transfering phots to fabric, then using them in a quilt?
I don't use photos, but I do design and print my own fabrics if I can't find exactly what I want for a project. In fact, I'm getting ready to print some up today.
My first recommendation would be to buy Bubble Jet Set. It's a chemical that treats fabric so the ink from your printer becomes almost completely permanent. So much less expensive than buying packages of pre-treated fabric sheets. Just make sure to use 100% natural fibers. I usually just use white muslin - prewashed in hot, hot, hot water and rinsed at least twice.
I've never had much success with the iron-on transfer method. I suspect it's most likely because I'm doing something wrong, but since discovering BJS, the point is moot. :-)
Most of my projects have faded by a shade or two in the first few washings, but that's all. I've heard the photo inks are even more colorfast when used with the BJS. Guess I'll find out today.