My experience using cloth diapers has been excellent!
My daughter has no rashes now, no leaks and is so happy in her cloth diapers! We started at 3 months old and I wish that we had started sooner. It is important to really weigh all the options out there and decide what is best for you and your baby. Also, it is good to try some different kinds of diapers to see what really works best for you. I have always read and heard great reviews for Fuzzi Bunz diapers but I hated them when I bought some!
The diapers I love for day time are Baby Kangas and bumGenius 2.0 diapers. Both are one-size pocket diapers. I like to use hemp inserts always as I find they hold way more than cotton ones do.
http://www.jamtots.com/Baby-Kangas-One-Size-Pouch-Diaper-C502.aspx
http://www.bummis.com/en/Products/covers/aio.html
For night the best diapers I have found are TotsBots Bamboozles with a wool or fleece cover. Bamboo, like hemp, is more absorbent than cotton and it is really soft and beautiful.
http://www.bummis.com/en/Products/covers/Bamboozle.html
Here is a good cost comparison for cloth vs disposables:
http://claudiaschoices.ca/store/index.php?main_page=infopages&pages_id=4
You won't use tons of water and detergent to wash the diapers so ignore those people who tell you that all your savings on the diapers will be lost to a high utility bill. Not true! Also, remember, when you are done using the diapers there is a good resale market for cloth diapers so you can sell them and make some of your money back! Try doing that with disposables!