Nowadays, you can buy iron-on tee-shirt transfers. Hewlett Packard, specifically, makes iron-on transfer paper that you can use in your home printer. Just choose which picture you want (or make your own!) and then print it using the special paper (make sure you know which way to load your paper so it comes out on the right side). Follow the instructions on the back of the box to transfer it to your cloth and ta-da! A homemade transfer!
I use Word to arrange the pictures/text (I do multiple t-shirts at a time in order to not waste paper), leaving the least amount of oddly-shaped white space that I can. You get about 10 pages per box, and it's not too expensive, but old habits die hard.
One problem with the homemade transfers is that the object (shirt, bag, pants, socks, whatever you transferred onto) then can't be washed too many times thereafter. Instead of wearing one of my t-shirts and then washing it, I usually wear them aroudn 3 - 4 times to have the transfer last longer. Even though the box says it's okay for washing as long as you turn it inside out, I find that the colors rub off easily. Probably hand wash is your best bet.
So, I hope you can find something that works!