I just use plain old tone on tone fabric, wash it with plain old laundry soap without any additives, dry it without any dryer 'stuff' like Snuggle or such.
Then I iron it flat with out any sprays or additives and iron it onto freezer paper. The rest is in my written tute here on the QB. Here it is: http://www.quiltingboard.com/tutorials-f10/making-your-own-quilt-labels-t117667.html
ali