if you want a larger than typing paper picture, I recommend Fotos on Fabric. I had them print a police patch I wanted to use as a medallion. i wanted it between 10-12 inches in diameter plus fabric around it for seaming. Here is a picture of the piece I recieved in the mail. The fabric had a nice hand and the colors were good. I think she charged me $10 plus a dollar shipping. I thought it was very reasonable!
http://www.fotosonfabric.com/
I am not affliated with this company, just a happy customer!