I've been doing cloth diapers on Finn since he turned a year old. I should have started them earlier, but I didn't want to invest without knowing what I was getting into (there are SO many different types!). My friend Nicolette showed me hers and it was a great introduction. I've been using the fold-able type with a cover mostly. However, I am so excited because I just bought some new ones! You can see them here: http://nickisdiapers.com/catalog.php?category=254
I know a lot of people cringe when they think of cleaning them, but it really hasn't been that bad. I won't lie and say that they are as convenient as disposables, but I have the time to wash them out and do a lot of laundry, so I do. And they have truly saved us SO much money! The last purchase I got this excited about was my cloth diaper sprayer. It's just a small sprayer that attaches to your toilet so you can wash the diapers out easier. It really doesn't take much time at all now!
I'm not sure if I will use cloth diapers right away on the new baby. Their waste is just so fluid and I may be a little more pressed for time at first, so I might wait a few months before I start them with her. Luckily, these new diapers grow with the baby, so I can use them now with Finn and then fold them smaller for baby girl!