Okay, so first, are you sure you are using a laser image and not a ink-jet image, that would be one reason the ink is coming up.
as for the medium, apply directly to the right side of the image, I like to put one coat on lengthwise, dry, One coat on width-wise, dry, one more coat lengthwise, dry and another width-wise, dry. So four coats going in opposite directions. after this is TOTALLY DRY wet the back/wrong side, of the piece of paper, really soak it pretty well.
Begin rubbing the paper in a small circular pattern. You can even use a toothbrush gently to get it going...GENLTY.
Soon the paper will start to disintegrate and you will be left with a fairly clear and black image just on the dry Medium. You can apply this anywhere.
You can also transfer your image directly to whatever you are working with. See Here>> http://dayeseye.typepad.com/art_every_day/2010/09/ink-jet-transfer-mini-tutorial-art-every-day-67.html Although this is done with an ink-jet image you will get the same results with a laser copy.
and here for a finished product with paint and all. >> http://dayeseye.typepad.com/art_every_day/2010/09/free-to-collage-art-every-day-69.html
Hope this helps, looking forward to seeing what you come up with!