I've been experimenting with a bottle of Bubblejet Set 2000 I bought some time back. Its a liquid in which you soak a piece of fabric and let it dry (I used a good quality muslin for the images below). Then you iron it to freezer paper and cut it to standard paper size. The paper can then be printed on using a inkjet printer and the image is supposed to be permanent. From what I've read on the web it will stand up to occasional washing, but not repeated washing.

Now I just have to figure out what to do with them. I had originally intended to add one of them to the back of a denim jacket, but even a jacket would get washed to much I think.

In this first attempt I downloaded an image of a dragon from the internet. I printed it on fine muslin fabric prepared according to the directions on the bottle. I was surprised at how rich the colors came out. I then used a clear hot set crystal to add a highlight to the eye, and 2mm copper nailheads along each of the ridges of the spine. I think the crystals really make the picture pop.