L.,
We used cloth with our daughter until she went to daycare and they didn't accept them. Bummer because we never knew what diaper rash was until switching to disposables during the day! We bought bulk disposables at Costco (did you know their house brand are the exact same as Huggies?) but I hated the idea of all the petroleum based ingredients in them and that weird gel stuff that absorbs the urine!
A friend of mine with a newborn and the same concerns as me turned me on to NATURE BABYCARE diapers. They're made in Sweden and are chlorine free (like seventh generation) and instead of the petroleum based plastic coverings (UN-like seventh generation)--they use a corn based material.
They are SO absorbent and fit very well. If you look around for promocodes, you can order them through diapers.com and get $10 off your first purchase. They also have a great return policy on diapers.com.
It might be worth it to try a package. My girl (20 mos) has never, and I mean never, had a diaper rash in them like she did in the Costco disposables. She also had sensitivity around the elastic on the legs--that is gone now after switching. For me, they are as good as cloth on her skin.
They are also compostable/degradeable, so they will break down in a landfill faster than a disposable. They're even packaged in a corn-based plastic that will decompose faster!
According to their website (www.naty.com) some Target stores carry them. I haven't seen them at my local Target (Northgate, Seattle)--so I order them on diapers.com.
Might be worth a try!