A.,
I've used cloth diapers for nearly 3 years now.
I like the Sandy's diaper made by Motherease (on the web) with the Rikki velcro wrap. They are the most absorbent cloth diaper out there, which is important with older kids who drink more than infants. They have snaps (great for older kids) and gathers (my husband didn't want to do oragami with prefolds), so they look and fit more like a disposable They also make a doubler insert, which is really nice.
I have a dry pail (with a Mother of Eden liner). Once a day, I wash the liner and diapers. I do a rinse cycle, then wash on high and hot with BioKleen Premium Plus detergent, with 1/4 c. vinegar in the fabric softener dispenser to prevent diaper rash. You can line dry or dry in the dryer.
My daughter is now mostly potty trained, so we just use the diapers for naps and at night. So we wash 2-3 times a week. But we haven't found any disposables that are as leakproof or absorbent. I have a little boy coming in June, and we're planning to use the cloth system with him.
I also love cotton/hemp wipes by BabyGreens. A batch of 12-24 will last a year (washed daily) before starting to fall apart. And my husband and I agree that the cloth wipes get our daughter so much cleaner. When I travel, I miss my wipes even more than my diapers.
I know some posts have said to just finish with disposables, but it's hard to know how long a child will take in the potty training process. Also, Motherease makes training pants (though they don't absorb as much as their diapers or disposable pullups).
I'd run the math and see if it makes sense to you. We didn't necessarily do it to save money, though we broke even with the cost of disposables. If we're able to use the same set with our little boy (and it looks like we should), we'll end up saving money. To me one batch of laundry every day or every other day isn't too bad of an inconvenience for saving my child exposure to chemicals, saving landfill space, and being prepared in an emergency or shortage. (Just keep a camp washer on hand, like the WonderWash for under $50, and you need never run out of diapers--even if you have no power.)
Good luck!
C.