I'm still waiting on my baby girl but I'm going to use cloth. I'm using econobum from Walmart because they are very cheap. You can get enough to keep them diapered until potty training for around $100. I've talked to some family memebers who used them and loved them. They aren't the cutesy kind... they are pretty plain, but they work. I did buy a few patterned diaper covers and a couple made for night time.
I also bought 2 bummis newborn packs because I think the econobums start fitting at 8lbs.
I don't have any experience to share with you since I haven't used them, but I feel pretty good about the choice to use cloth.
We have gotten some disposable for gifts and we still plan to use them if we have to travel or be gone from home for a while...
So here is what I bought with links if you want to look:
2 kits- http://www.walmart.com/ip/Econobum-One-Size-Cloth-Diaper-Kit/16608587?findingMethod=rr
2 kits- http://www.clothdiapersinc.com/proddetail.php?prod=BMS-NBPK
And I bout a few of these because they are on sell right now- http://www.clothdiapersinc.com/proddetail.php?prod=SNW-001
You can also use cloth wipes. I made some really cheap ones by getting some soft flannel material from walmart and cutting them up instead of paying a ton for fancy ones online.