If the quality was lacking, it's quite possible you weren't using quality paper and ink. What exactly are you using right now (Shirt Type, Printer, Ink, Paper, Press Brand, Temp, Pressure...)?
I think what you're talking about is Vinyl/Flock. You'll need a vinyl cutter if you want to do it yourself; I don't know too much about how these work, but I've heard you can generally only have up to 2 or 3 colors (though there is some new stuff coming out combining sublimation and vinyl cutting I've heard about - subli-flock).
If you want to order transfers from a company, I've seen people recommend both
http://www.acetransco.com/ (I reaaallly hate thier crappily-done text at the top, hehe) and
http://www.silvermountaingraphics.com/ (I'm planning on trying these folks out for plastisol transfers in the near future).
Again, though, tell us what kind of equipment you were using to produce your low quality prints and we may have some suggestions for you before you start using one of these companies.