Here are some tips in a post on heat pressing step by step. Maybe if you check this out, there might be something you can add to your process to help the transfer adhere properly.
transfer paper tips for lasting image - Page 5 - T-Shirt Forums
Good advice to up the heat.

It's not an exact science, and if turning up the heat improved your finished result, then that's a good thing. =)
A successful press needs three things: time, temp and pressure. Double check that your pressure is high enough. Try increasing it some, if that helps, then you are moving in the right direction again.
If you aren't already, don't forget to pre-press the moisture out of the shirt before you start.
