In response to Scota regarding waterslide transfers. I have a lot of experience with them although not with engraving. It might work well, especially to transfer smaller more detailed designs, but they are EXTREMELY fragile and can be difficult to position exactly where you want without wrinkling and folding over. Todays waterslide transfer papers, as opposed to the old decals we used on model kits when we were younger, are incredibly thin, often only a few microns thick. Anything larger than an inch or 2 square can be difficult to slide into position properly unless the surface is perfectly smooth, ie like a mirror. In order to not deteriorate during the engraving process, it would need to have some fixative such as spray lacquer applied, which isn't that big of a deal. After wetting the transfer, and before applying, brush on some vinegar, for some reason it is "wetter" than water and will allow the transfer to slide easier. After it is applied where you want, brush on some alcohol, (the rubbing kind, not your good scotch) and allow to dry, then apply the fixative to seal it. You can also purchase specially made liquids made just for these jobs at any decent hobby shop pretty cheaply. It should be durable enough to hold up while you engrave. If someone can try it, let us know. Hope this stimulates some thinking.
