Placing a image depends on the program and it's edition. Usually the person opens up the images file and then uses a hand tool to grab the image and move it to the paper then goes into setting and clicking free transform and then sizing it correctly and placing it.
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Photoshop and Illustrator are both Image Editing Programs for your computer. They are often used professionally for businesses.
The latest version, Illustrator CS5, is the fifteenth generation in the product line.
A staff illustrator is employed full-time by (for instance) a magazine publishing house, rather than being a free-lance illustrator.
Do a google image shirt of "tshirt" and find an image of blank tshirt. Then use photshop or illustrator to add pictures/text as a template. You can find iron-on pages at many stores such as WalMart or Target that will feed through your printer and you can iron them onto a tshirt
You have to download or buy the font (if it is commercial) and to install it. Another option would be to generate an image on some system supporting the font and import a finished image instead of the text.