Sorry but I can't find it in the searches I have done!
What is the best way to apply and then smooth out the icing around the edible image. I know your not supposed to let the bc crust. So how then do I viva it to smooth out the top? Can you viva the image?
Thanks much!
I found this when I was searching. Hope it helps someone else too! 
http://shop.pattycakes.com/mmcakes/images/misc/edible_image_instructions.htm
http://www.bakingshop.com/cakes/edibleimages.htm
http://www.shezcakes.com/ImageInst.htm
Mareg, you cannot viva the image. The websites you note are very helpful and if you follow those, you'll be allright. I always put the image on a freshly iced cake. Immediately, you can put a sheet of viva over image and smooth so it makes contact with the frosting. Take the viva off and check the edges of the image and if needed you can use your finger tips to lightly press around the edge but do not touch the image. As the image starts to disolve into the icing, any touch will scar it and there's no way to fix! Most often, I'll run a border around the image just to insure that the edges are held down until set. Love to work with the images. Wish I could afford to have this equipment at home. Wish you well.
I ice my cake as smooth as I can with my spatula, then put the image on and gently smooth the edges down with my hands. I then let the icing crust like normal and then Viva my cake as normal. I do run it over the edges of the image carefully so that I do not rip them with the Viva. I don't like putting borders around my images (unless for some reason what I'm doing calls for it). I also always cut out my images (like what is done for image plaques) because I don't like putting the extra nonprinted area of the image sheet on.
Anither option you can do also is to ice your cake smooth, let it crust, sooth it with Viva and then lightly sprtiz the area where you want your image to go with water and then apply the image. With this option you have to be pretty much dead on where you want the pic to go because it it is a bit more difficult to move the image around with out it ripping.
Thanks Jojo40 and missyek, I think i'll viva it and then lightly mist it and place it on. Not much room on the cake for mistake! I had to cut it down it was too big for the cake. I don't know yet if i'll put a border around it or not. Thanks for your responses!
still more info from moderator Lisa:
http://www.cakecentral.com/article60-Edible-Images-Chapter-2---Edible-Paper-Types--How-To-Apply-Images-to-Your-Cake.html
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