craftgrrl | iron on transfer help (Reply)

My niece is turning 1 in a couple weeks. I am getting her a gift, but I want to make her something else, too. I would love to get a t shirt and then iron on a transfer onto the t shirt. Her name starts with S, so ideally I would take the link below and somehow color it in digitally (does anyone know how to do this, too? Or if I did it manually myself, what pens to suggest?) and then iron it on.

Basically:
-Do you have any suggestions for iron on transfers? Brands, tips, etc.
-Do you have any tips on programs for 'coloring' in the snake? http://www.preschool.co.za/gappUploads/downloads/s-snake.gif
-If I can't use the computer to color the snake, what would you recommend?