hmmm... i think you can use picture like that right? but i believe you won't get that kind of effect as the background of the picture contains toning... unless you make it a flat colour... am i right? correct me if i am wrong.

no need to trace yourself... just use the illustrator live trace function and it will be converted into vector form liao...
I understand pretty well that toning is possible but it will not be as great cuz it is silk screen printing right?

but using the heat transfer, it would mean that the picture would come off after a few washes made by the washing machine... unless they are washed cold right?