Thanks to Joey for this Frugal Baby Tip!
I bought regular prefold diapers (birdseye weave and thick cotton) at Target or somewhere, and then use wool soaker covers I got on Ebay. I also use Gdiapers covers, which $25 for 2 and come with 15 flushable diaper inserts. Also, I didn't start cloth diapering until at least 6 months with both kids. Although we didn't have a washer/dryer then (but we lived close to a laundrymat in NYC) - so I don't know what we'll do if we have another child. I have never owned an AIO because they seem prohibitively expensive and I feel that using a prefold with a cover works well enough. I don't even use a Snappy or pins - the cover holds the diaper in place.
All that being said, another great option is DIY - the best prefolds I have I made myself from inexpensive flannel. They are super absorbant and cost less than $1/each. As my son gets older and settles into a size large, I plan to make my own AIOs. If you can sew even a little bit, you
can make diapers and there are lots of patterns/instructions online.