I've had more luck with the toaster oven then I do the incubator. I have a hova bator and have had a lot of trouble with the hatches, losing most of the chicks. I didn't lose but one with the oven method. Ok....about the cloth. If you fold the cloth and keep your temperature at 100 degrees, it should be fine. Mine was! Just make sure the cloth does not touch the sides. The pan of water should be on the middle rack. the top of the pan (these are the pan and lid that comes with all toaster ovens), anyway, the top of the pan sets on top of the water pan. There is usually holes in that part (the top), which is why I had put a cloth on it. It shouldnt matter if you use a cloth or not. Mark your eggs, with an X on one side, O on the other. Place your eggs in the oven starting in the middle and working your way out. Make sure all eggs are facing with either the x up or the o up, so when you turn them they will be the same way. You should be able to fit about 20 eggs in there depending of course on the size of your eggs. Candle your eggs within a week. Make sure you always check your temp to make sure it is as close as possible to 100 degree. Check your water every evening, fill as necessary with "warm" water. I turned my eggs three times a day, except for the last two days.
In the electric skillet, I did not use any cloth. Just put the egg inside, covered it, made sure that the little vent slide was open on top. Don't forget to put a little shot class or similiar full of warm water inside and check it everyday. Good luck!