I usually don't have trouble with my colors bleeding b/c I use a medium-stiff consistency of buttercream. I do, however, have issues with the buttercream not being flat against the parchment paper and leaving pock marks, which I consequently have to take a paintbrush to.
Somethings you might do to keep the colors from running is either thicken up your BC or maybe do the outline, put it in the freezer, fill in a few sections, put it in the freezer, etc...
I know that sounds like a pain, but it might keep things hard enough so that they don't mix.
HTH
By other side do you mean the top of the transfer (what shows on the cake) or the bottom of the transfer (what goes against the actual cake)?
I don't use a spatula when I do the transfers. If I need to smooth the back (what is going against the cake) then I lay a piece of wax paper over it and softly smooth over it, like you would do a viva paper towel on a cake.
As far as the top of the transfer nto being smooth, sometimes in large sections of colors you will get the wormy look if you just pipe lines to fill it in. I use a soft medium when doing mine and I let the icing build out and away from the tip more than actually piping in lines.
You shouldn't have to do a ton of smoothing on the front of it, as it should come out pretty flat. If I have a few spots that look wormy I'll let the icing thaw and crust a little, then use my viva paper towel on it to smooth.
The worm thing is very common. Think about how you pipe dots, holding the tip in place, and letting the icing build away from it. That is pretty much what I do, only I am moving the type around as the spaces fill up. Sometimes there are just the worms in the end and that is where the paper towel comes in handy.
I will also flip the transfer over after it has been in the oven for a little while and run my finger or finger nail over the wax paper. I can work out some of the worms that way, and since the icing is already semi hard, it doesn't distort the image any.
[quote="bpmd210"]
"I will also flip the transfer over after it has been in the oven for a little while "
I'm only doing my second FBCT here. Did I miss something with an oven?
Dave
????? I bet she meant "freezer" 
Trust her advice though, her transfers are perfect!
Opps!! You know I've written that same thing before in the past. I'm sorry, yes I meant freezer.
After it has been in the freezer for a bit I will take it out, flip the whole thing over (I put wax paper over the back before it goes in to smooth it, I don't use a spatula for that) and then run my fingers over the top of the wax paper on the top of the image. This way I can see what it looks like, see if there are any worm lines and try to work them out while the icing is a little harder and doesn't mush as easily.
*blushing* Thanks Jeep_Girl!
I make mine on a waxed paper covered piece of plexiglass (instead of a cookie sheet) so I can lift it up and peek underneath it while I am making it. That way, if I have any gaps or squiggles, I can work them out from the back side (the side facing you) with a toothpick or a paintbrush while I am doing the FBCT. No unwelcome surprises later, when the thing is frozen and I have it on the cake while I`m peeling back the waxed paper!
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