Hello. This machine makes beautiful referigerator magnets! We carry magent supplies in the Magnets and More section of the website. Of course you can also buy supplies elsewhere and glue whatever you want to them. These machines conform to US Standards and work with supplies that are made to US Standards.
As far as fabric goes, different fabrics will have better or worse results. It just depends. I find you get the best results from using a standard cotton fabric that is ironed onto an interfacing and cut to a really really perfect circle. You can use the MultiCutter for those perfet circles.
Replacement supplies can always be purchased from ButtonMakers.net!