Last time I bought something from there, they were still using iron-ons with the full sheet instead of just the image die-cut out. But since then, they've allowed for transparent backgrounds. So they may have started die-cutting or they could just have paper in the same shades as their colored shirts.
As soon as I have $20 or so to spare, I'm gonna buy one of my designs and post pictures on here to show the product quality. If it sucks, I'm gonna start looking for someplace else to set up shop for free.