Luvs you can use paint or pencils (i often use watercolour pencils, colour in first then 'paint' over it with water mixed with fabric medium) Thats the trick to using paint or pencils - you need to paint over them with fabric medium (I dilute mine 2parts water to one part fabric medium) as the medium is the stuff that 'sets' the colour. If painting you mix medium into the paint directly, then paint away, with pencils I go over the design with the medium mix, when dry I iron to confirm the colours are set. medium is at craft stores, I use the Jo Sonja's brand, she makes all the paints used for folk art etc, the medium is used when painting t-shirts etc, hope that makes some sense
_________________
"My will is mine.....I shall not make it soft for you" Aeschylus, Agamemnon