Paper towels are what I use too. I have my 1 week old babies in a fish tank right now, as a brooder, and paper towels work very well. I just use a couple of layers and it is much easier to clean up, as they are incredibly messy!! Yes, it is a lot of paper towels, but at least they break down easily in the compost/garbage or wherever they end up. My babies don't have a problem walking on them at all. Maybe it's just cause your 1 day olds are so young. In a day or so, they should be better able to walk.
Hopefully someone with more experience will come along and give you more info.
I've been scared off by the shavings as well because of the warning they might eat them. My babies are 5 days old now and have eating and drinking and splashing and messing down to a fine art. They walk and run just fine and I've been using newspaper since day 3. No slips.
So? I think it's time for shavings on top of newspaper. Agree?
I use wood shavings covered up with paper towels for the first week. Then once they are eating well I take off the towels. I made a wire platform with an aluminum cake pan under it to put the water on. That way the splashes go in there and can be dumped daily.
Thanks for everyones advice - they seem to walk a little better this afternoon. We put a little cat food dish in there with water for them to drink and they of course have been taking turns bathing in it instead.
I will switch to shavings in the next couple of days.