I would try heat-setting a photo and see if that helps. Found this article:
http://cqmagonline.com/vol04iss02/ar...37/index.shtml
Another thread I found says that it's possible to print photos on a laser printer, but *not* if you use inkjet transfer paper. Here is a link to that thread:
http://theqec.org/232/can-i-use-a-la...ting-on-fabric