This is the current theme on the Artful Ideas Flickr group and I used a couple of vintage lady images I had in my stash and applied them to some cotton fabric using Golden Gel Medium - Regular Gel (Matte).
As my proper sewing machine has a broken needle at the moment I used a tiny little machine which just does a basic straight stitch and is so irritating as the cotton keeps breaking in it! However, I got the two ATCs done (evenutally!) and just sewed an assortment of scraps of fabric and ribbon around the main 'image transferred' piece of fabric.
There are some lovely ATCs in the Artful Ideas photostream already which you see here.