I've always used a product called 'Printed Treasures' by Milliken. I made a quilt 7 years ago for my DG's graduation and I know my DD washes it often. The pictures have held up very well. All I did was print from my home printer, let it set to dry for several minutes and then ironed the pictures with a pretty hot iron. The product is kinda pricy but I buy the large package with a 50% off coupon from my local box store.
Since making that quilt, I've gotten a new printer and am not sure if the ink will last as well. I saw where someone said that not all home printer inks will hold up to washing. So, I called HP, my printer company, to ask them about how permanent the ink I use will be. They said, it's not made to print on fabric..... blaa, blaa, blaa. So I don't know if they are just trying to protect themselves or if the ink now is different. I think I'll print off a picture and then wash it. I'm hoping it will still work as successfully as it did in the past.