Ampersandwitch asked me some questions in PM but I thought I'd answer them here for anyone else.
I made the OOT stencil by taking this image:
Then using the threshold function in my image program (GIMP for me) to make it black and white. Then I made sure all the white bits were connected in a way that looked alright enough. What you're aiming for is an accurate representation of the original image in monochrome with the background colour all connected. You can see around Link's chest and neck area on my stencil it doesn't look too great, and in some other bits too.
Here's the stencil image file if anybody wants it. If you make it out of the same stuff I did, be prepared, there's gonna be some pretty weak joins in there, especially the shield designs. Cutting it takes a while but is kinda fun. Use an x-acto knife type scalpel.
As far as the paint goes, I used acrylic paint mixed with fabric medium, which you should be able to find in art shops. It helps the paint stick to the fabric. I dabbed the paint on with a small sponge (actually the corner of a square of foam I got from some acoustics place) which gives me better results and control compared to using a sponge roller.
@ ampersandwitch, I haven't had much experience doing this either (and I make plenty mistakes) but it's pretty easy to pick up. Look up some more tutorials on the internet, they shouldn't be too hard to find. Good luck and I hope this helps
.