So I ordered up some heat transfer vinyl to make a shirt for the local club I am involved with and I believe it came out pretty nice!
This vinyl is quite a bit more expensive than regular sign vinyl, but it is very easy to work with and applies with a normal household iron.
Here is the shirt I made today:
http://i22.photobucket.com/albums/b3...ps9cdkbk2l.jpg
http://i22.photobucket.com/albums/b3...pslj9kfzgf.jpg