I AM NOT AN EXPERT. But I've been reading on this and spending lots of time on the boards to work on tshirts for our September trip. After a few practice trys, I was able to make some shirts I really like.
First of all, where do I get the transfer paper?
ebay
http://stores.ebay.com/Heat-Transfer-Supplies
From everything I've read, buy the dark transfer paper. It was about $15 for 10 sheets, including shipping. You can get cheaper transfer paper, but the experts say this is the best.
Do I use a regular printer?
Yes, use an inkjet printer.
How do I create the image/words? Can I just create it in Word Perfect using the image as clip art?
Have the creative experts on DIS boards create it for you. See what they've already made, ask for a special design or modifications. Just paste what they give you into Word to resize and print.
How will this image hold up to washings, etc?
Mostly, yes. If you use tshirts that are only cotton or cotton/poly and non stretch type, don't use fabric softener, remove promptly from the dryer, use the dark transfer paper and apply properly, it seems to work. I've washed my 2nd "practice" one 5 times and all is good. My first practice one I didn't iron right, or remove the backing from the transfer paper, so it had all kinds of problems. My advice - but a clearance shirt to practice with before you work on the matching shirts.
Finally, what is final cost usually per shirt (for a good quality cotton tshirt)? If it is the same as buying a shirt, I probably won't bother.
I bought the shirts at Wal-Mart (Hanes), Target (clearance) and Michaels - so $2.50 - $3.75 per t-shirt, then about 1/2 sheet of transfer paper per shirt is another $0.75. I guess another $0.20 for the ink... Let's just say it's less than $5 per shirt (so I don't have to add in the cost of electricity to run the iron, printer, computer, etc).
Hope that helps.