There is a great new website I found, called signsbyus.com that sells some awesome decals at a good price. They will also make custom decals and they have a monthly drawing for a free decal. Check it out.
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First, cut the decal required using a pair of clean scissors or a sharp hobby knife.
Second, dip the decal in a bowl of warm water (as warm as your hand) not hot and wait 30 seconds. After 30 seconds, place the decal on a paper towel to dry.
Third, while you wait for the decal to dry, use a decal setting solution and brush some onto the position where the decal will be.
Last, slide the decal onto the required position and move in place if not already. Dry off any remaining water or decal setting solution using some tissues. Don't touch the decal for at least an hour after setting it.
put a roll of vinyl into a decal cutter, and it cuts it then you clean it up and tape it.
Decals for bicycles can be found at many retailers. Check out your local bike shop or you could even have your own decals made.
There are companies like Stickerbot which has a website with tons of options on decals. There are also companies like Stickerguy which sells the decals in bulk.