HI all.
I am currently expecting baby number 4 so I have quite a bit of experience with cloth diapers.
For newborns that you have to change about every 2 hours (in the beginning) the best way I have found is prefolds with covers. They are the cheapest and you can have a lot of diapers on hand that way. Of course systems like FUzzi bunz and Bumgenius are great too especially since they have the one size options now. They are just more expensive.
Here is my favorite brand of prefolds (flat diapers):
http://www.greenmountaindiapers.com/diapers.htm
For a new person I would get about 12 newborn and 12 infant size to start with. You can use covers and also the snappis (same website under accesories). They are great! No pins!
You can use the prefolds inside the Fuzzi Bunz or Bumgenius diapers since they are pocket diapers. I recommend both brands for older babies. THey are awesome. I prefer snaps on them instead of velcro. The Velcro will gather lint and cause issues. Also my kids learned to open the velcro and take the diaper off. Snaps are harder for them to mess with.
You only need a dry pail for the diapers. If you breastfeed and the poo is basically liquid you don't have to rinse if you don't want to. You can get spray hoses that attach to your toilet at the hardware stores if you prefer. I just tossed them in the pail and washed every other day.
For washing it depends on your set up. I have a traditional top loader, so I just wash every other day and the diapers go about to medium load but I use high load of HOT water. One wash and rinse is plenty. Only use about 1/4 the amount of soap you use on laundry to avoid build up. I also us Biokleen Bac-Out. It uses enyzmes to break down bacteria and such. I put a generous squirt of it in each load.
If at any time you notice the diapers don't smell fresh or your child gets a rash from them you may need to "strip" them. When you do this wash once with a generous squirt of Dawn dish soap (just one big squirt). Then wash a second time with NO soap. This should solve the problem. Sometimes they just get laundry soap build up or just aren't getting all the ammonia out of the diapers in the wash.
I haven't had much success with homemade diaper soap. I just use my regular laundry soap.
Oh and very important: NEVER use fabric softener on diapers. In fact you shouldn't use it on your regular laundry either when you cloth diaper as it can be on the walls of your dryer and such and get on the diapers. It causes the diapers to repel water and not be absorbent.
Any other questions you can think of I am happy to help, on the thread or PM.
I have spent about $200 on my fist child and again between #3 and #4 about $100. I haven't spent any this time and baby will have plenty of diapers. If you take good care of them you can easily resell cloth diapers for at least 50% of the original value. Sometimes more for newborn or small sizes that are only worn a few months.