|Logos on kids clothes are a nice RTW detail. I use Photoshop Elements, Microsoft word, and an inkjet printer to design custom logos for my kids clothes. Here's how:
1) take a picture with good details in the face and import it into a picture editing program (photoshop elements is an afforable program and has great organizing capability too if you take a lot of digital pictures.)
2) using the cookie cutter tool (or shapes), select the face. then change the color to grayscale. I chose a circle shape to frame their faces
3) fiddle with the constrast slider buttons OR use filters like "stamp" or "cutout" to artistically blur the image
4) change the colors by clicking "adjust color" (doing this produces gradations of blue, red, purple, etc).
i use june tailor print and press, which is a printable fabric sheet with an iron on adhesive backing.
1) to save paper, cut the piece into a 3 by 5 index card size.
2) in Microsoft word, make a table with no borders
3) import your image into the table and copy it four times
4) put the 3 by 5 sheet into the printer, and print it in color.
Iron, then stitch it down to your garment.