(Brian SD @ May 03 2005,13:49) Shoreman, there are still iron-ons available now that do offer at least *decent* image quality. I use a combination of Photoshop and Illustrator to create my graphics, and go through the classic screening process at home when I make T-Shirts.
You have a silkscreening setup at home? How do you create the screens? One thing I always wanted to try, though it isn't big enough for a whole-shirt sized graphic is the Print Gocco - you create the graphic, print it in black on white, put it in this thing with a blank screen and a flashbulb, and it makes a perfect print screen. Only problem is that the screens are like 5"x7" or so. I've also had good luck with those printer-iron-on things. They're like $1 per sheet and the only problem there is you can't print white*, so you have to use a white or light colored shirt. *A dye sub printer can be used that can use a white cartridge but chances are you don't have one of those and don't want to buy one just for this project.
Yep, I have the full silkscreening set up at home. It's not that hard to do at all. I use 10x14" screens, but bigger ones are available if I wanted to do that. Most of my designs are only a couple inches (like 5 or 6) wide and 4 or 5 inches tall, so it's never a big issue. From the looks of things I may be screening the new SuperFuture t-shirt, that design is like 6 inches by 3.5 inches. Sounds like the "Print Gocco" method (never heard that name before) is exactly what I do. I have to use 2-4 screens for multiple-color designs. They never match up perfectly with the colors but that's kind of a good thing - each tee is unique and the color overlays make incredibly cool effects. I could try to be precise about it but I like the imperfections that more or less enhance the design.