Thanks to Angela for this Frugal Baby Tip!
Here's the grand list of links on diaper folding:
The way I do it is basically:
http://www.dy-dee.com/html/in_diaper_covers.html with a couple variations.
In step 2, I usually tuck one side *inside* the other, since this holds the fold better when I'm baby wrestling :)
At step 3 is usually where I tuck the diaper under the baby and pin it on, but if your not pinning the rest of the insturctions would work fine.
Another variation I don't see often is for those annoying poop blow outs (at the back)... when we had them I would fold about 1/2" towards the inside at the back...this helped greatly.