I just bought transfer printer paper at Walmart to do this. I haven't tried it yet, but it was recommended by a friend. I remember someone on here talking about someone that would do your photos on 8X8 squares, for about $5 each. I would love to find that info again, as they said the color was imbedded in the fabric instead of just ironed on. I am worried about how well the transfer will hold up with washing. It probably won't be too bad as this will be a wall hanging.