Here's how to make your own inkjet fabric sheets (might come out a little cheaper... but IMO it's worth the time saved to just spend the extra on the ready-made sheets).
I'm going to write some helpful hints below as the guide is not intended for printing labels/tags, just printing on the fabric paper in general.
Here's a how-to for making the labels...
1) Determine the size of label you want. You can measure labels on various things for size ideas. For the example, I'm going to use 3/4" by 1 1/2"
2) Create your label design using paint or whatever you're familiar with (or just type your name in a cute color/font)
You might want to add a border around the entire image so you know where to cut (so that everything stays centered)
3) So now you've got your logo made. Open a new paint window, set the attributes to 8 1/2" X 11". Copy your original image and paste it onto your new document. Paste four across the top row. Copy that row and paste it over and over until you fill the page (this is a full page... 40 tags)
4) Go to "File" then "Page Setup" and make sure your settings are like this- Print a test page on plain paper to see how it'll turn out.
5) Follow the HP instructions above to print using the fabric (very simple... about the same as using paper, easy). SAVE your documents so you don't have to do all this next time!!
Now that you've printed your label, you're ready to use it! How will you use it? There are raw edges! For now, I'm going to applique it on. If you wanted to have the kind that folds and goes into your hem, you'd just double the length of your image and fold it when finished... then you'd only have raw edges on the sides, but you could add a seam allowance to the edges if you'd like. I'm sticking to the basics for now. Also, if you really wanted to get crafty, you could print care instructions/size info on the reverse side of your foldable tag. I think that's everything! *whew*