Here is a run through of how I transfer an image to fabric ready to embroider! So simple.
1) Iron your fabric... easy see?
2)Print out your image on good ol' printer paper. I use my Light Box to then trace the image on to the fabric carefully with a pencil. If you can't afford a light box (pretty inexpensive at Hobby Lobby) you can tape the paper to a sunny window and use that method. Just be careful you don't tug it down.
You get an exact pattern of whatever you trace, therefore be careful when your pencil is touching the fabric, it will leave a mark.
3) The fun part it picking the floss. ALWAY USE DMC BRAND! My color inspiration came from this craftastic fabric I have.
4) The cheapest option for holding the fabric while you stitch is a wooden embroidery hoop. However, the best option is a Q-Snap frame made of PVC pipes that you snap together to make a frame. Lay your fabric across the frame. Then you snap "clamp" on the pipe to hold the fabric in place nice and tight. I used strips of ratty old towel in between the fabric and the claps for extra tension.