You can also use a printer to print on fabric. Just be sure to use pigment-based ink (because it is water insoluble). There are a number of different manufacturers of paper-backed fabric specifically for use in printers. Electricquilt.com has one of the best, but there are other very good ones too; check Amazon.
Here is a link to a website with information:
http://www.gloriahansen.com/articles.php?p=1&ID=14