Go Cloth diapers!! I used a diaper service for my son, they were rectangular diapers you folded and put in a wrap that had velcro fasteners. I washed my daughters having inherited some cute hour glass shaped dipaers and again used the velcro diaper wraps. I was not a knitter than, if I was I would have tried wool soakers.
If you use a service it is about the same cost as buying disposables---and better 1) they are delivered to your door, 2) you don't have to wash them and 3) you do not pay for extra garbage and 4) way way way better for the environment. The disposables people used on their kids 20 yrs ago are still in a land fill somewhere.
I have a co-worker who is due in 3 weeks who is planning to wash her own cloth diapers. She was getting Wee Bunz items, I think.
http://www.weebunz.com/index.php
Go cloth!!