Paul Clare provided the following information, thanks Paul!

Get yourself some Avery Personal Creations Ink Jet Printable Fabric (which is sewable or iron on). Before printing on the fabric, print a test on a regular sheet of paper. The hardest part is getting the emblem to the right size and color, and I highly recommend playing around with different DPI settings. Practice printing emblems in Black and White on normal paper until you are happy with the results. Do your best to fill up an entire sheet with various emblems and align them in even horizontal rows, since the fabric paper and the sticker machine stock will be your biggest expense (outside of ink cartridges and printheads).

Once you are happy with a filled up test sheet printed on paper, go ahead and print out a sheet on the fabric. Let it dry (don't touch it for a couple of minutes minumum).

The newly printed emblems are best applied after being run through a Xyron Sticker Machine. There are a couple different models, but I prefer the 250, it can make stickers 2 1/2 inches wide while the smaller models can't. I usually cut a strip of emblems you can fit in the sticker machine and run the strip through the machine. I often can get two or even three strips into the 250 side by side, maximizing your sticker machine stock.

Note: Smaller emblems can fall into the machine when using the 250 and can waste the sticker machine backing stock.

Cut the emblems out as needed, remove the backing and apply.