So, I started this thread a while back, and decided to try it out.... and was quite pleased with the results.
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I ordered my Oracal demo sheets, and since you can only order one of each type, and I ordered the 651 and 641, I decided to order Orajet 3651 and 3850. I didn't really understand the whole inkjet printing thing, so I had hoped that this stuff would work with my HP. Well, needless to say, that didn't work, and a quick internet search educated me on the difference between commercial and consumer inkjet, between water based inkjets, and the stuff they use on vinyl signs. I had a few designs that I wanted to dye, so I figured - why not just print them on my laser printer (Brother MFC9840) and see what happens. The first one I did was on the 3850. It was a fairly intricate design, and I noticed the black printing tended to flake off as I cut. The next design I did was as pictured. I did black first, then came back and did the two shades of gray, finally the colors (then the marbeling). I printed the image directly onto the 3651 and trimmed out the colors as I went - so I didn't have to mask until I got to the colors - I just masked over the airplane, and used the original printed colors to cut out of the vinyl. The 3651 seemed to not flake as much. Maybe someone with a little more knowledge then me in vinyl can explain why this seemed to happen. I had already cut my 651 and 641, so I don't know if it's possible to print onto that vinyl. I can order more samples in a few days, and will try those out when they arrive. It saves the step of transferring the image to the vinyl or having to cut over a light box.
The sheets are 8 x 10, so you do need to augment your vinyl. I use the shaving cream painting method, so I don't have to worry about having the complete flight plate of the disc covered like the dipping method.