Thanks to Lynn for this Frugal Baby Tip!
As for used baby clothes, I got a lot of my stuff (when she was small, sleepers was all I bought brand new...only other brand new stuff was given to us as gifts) from the local thrift shops (we have Children's Hospital of the King's Daughters, Salvation Army, and some parochial school shops). You wouldn't believe the deals I've gotten there.
After my daughter outgrows the outfits, I just re-donate them so someone else can use them. I only keep a VERY few representative outfits that I fall in love with for later (these are usually more worn, anyway!).
Getting stuff from the thrift shop kind of alleviates that "gotta keep it for the next baby" urge for me because I spend pennies for it to begin with and I know that if I'm blessed with another baby, there will be a whole new slew of stuff that I can pick up for pennies again! We are moving in a couple of weeks, though, and I'm thinking of having a yard sale with all the OTHER junk I have...it's amazing how much you accumulate...