Yep - another vote for Versacraft! Lots of lovely colours to choose from, comes in cube pads as well as full size so you can get a bunch of colours without having to get too spendy, easy to set with an iron and it washes really beautifully! Nice crisp images, too.
The reason Stazon is not recommended for fabric (I asked Tsukineko directly) is that the solvent may eventually destroy the fibers of the fabric. Not a problem for short-lived stuff maybe but for a project that's going to be a around a long time you'd be best to avoid it.
Have fun!
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