Do you only use Ferric Cholride or have you used "Lye" or "Muratic Acid"? if so will they get the same results?
I have tried to Iron on the toner image from Glossy Photo paper using an HP laserjet 6P and could barely get the image to transfer to the enclosure. I had to buy the wife a new iron too since she caught me using it on my work bench.
Well, at least you have a dedicated iron for etching now!

You know how some people love single coil pickups, while others prefer humbuckers? Same is true with etching methods. What works perfectly for one guy, will be a disaster for someone else. Neither is right or wrong, just different.
I am a photographer, so I really wanted to etch with photo paper, because I have a lot of it around. I tried and tried, but I had a lot of the same problems you are having. PNP blue was even worse for me.
Now I'm getting consistently clean transfers with sharp edges and NO PITS, using the method below, combined with nail varnish. Best part is that the HP presentation paper Cody recommends costs a fraction of what photo paper does.
Maybe give it a try:
http://music.codydeschenes.com/?page_id=2035