I'd be very surprised if you have any problems etching that. It looks to be pretty much perfect.
You can use turps or iso to clean off the toner after it's etched.
I have to admit, I may get some proper transfer paper to test. This has a layer between the paper and the ink that dissolves in water, so there is no paper residue left attached to the ink.
http://www.pulsarprofx.com/PCBfx/main_site/pages/products/transfer_paper.html
Yeah, i've heard good things about the pulsarpro stuff, sadly digikey wont ship it to NZ. Dunno why.
I normally use Press-n-Peel blue which i get from Jaycar. It's not cheap but i find it gives good repeatable results down to 20mil tracks, 10mil on a good day.
One thing you do have to watch though, is when you're doing boards with a sub 30mil clearance.
The toner will spread out when it gets hot, especially if your printer is putting a lot of it on (density setting).
This makes the tracks wider than they should be, so if you have a small clearance between tracks it will get even smaller and may produce shorts that you have to clear with a knife before etching.
10mil tracks with 10mil clearance is a nightmare. 10mil with 20-30mil clearance is fine.