Forget about printing on some transfer paper and then ironing it onto some fabric. With some freezer paper you can print right on the fabric itself. No need to reverse the image and it's faster, cheaper, and more effective.
Step 1: Materials List
Freezer paper? Check.
Step 2: Cut to Size
Cut a piece of fabric a little bit bigger than the 8.5"x11" that your printer can handle. Or, if you have a bigger printer, go bigger.
Cut the freezer paper to an even larger size to give you a nice margin of error here.
Step 3: Iron Together
Place the working side of the fabric onto the ugly old ironing board you have lying around. Now place the plastic side of the freezer paper down on that.
In other words, the working surface is safely facing the bottom and the paper side of the freezer paper is facing you. Now iron it together. The two pieces will become one.
Step 4: Cut to Size - Part 2
Trim the combined fabric paper to something your printer can accept. For me, that's letter-size. For my friend, who bought a massive Epson printer while flush with cash, that could be two-feet by whatever.
Step 5: Stick it In
You now have a piece of fabric that is supported by the attached piece of freezer paper. This makes the resulting combination solid enough to be grabbed by the printer without flopping about. Treat the finished piece like a regular piece of paper and stick it into an inkjet printer. My printer flips the paper over and then prints on it so I placed the piece in the tray with the fabric side down.
Step 6: Print!
Find some image you want on a piece of fabric and print away. You'll be surprised at the level of detail. This Instructables logo in the picture is just over two inches wide.You can print anything you want. I found this technique because a friend wanted to create some treasure maps for a pirate party. If you want the image to be on something that will get a lot of use you might want to treat it with this stuff.