I applaud you for trying to be frugal! It bums me out a little that sometimes the way people talk about CDing can make it seem like if you're not using 35-dollar fitteds and 18-dollar AIOs you're not doing it right.
Which is just silly!
Do you sew or knit at all? If you knit even a little, longies (wool pants that you wear over the prefold or flat) are really easy and cheap. You can use cheap wool from a big craft store, or Knitpicks.com sells really affordable wool, too.
If you sew at all, it's really easy to make pants out of the sleeves of old wool sweaters.
As the PP said, you do need lanolin to make the wool really water-resistant, but it's under 10 bucks for a tube from the drugstore, and since you use a tiny bit each time, it lasts for ever. I don't use special wool-wash, either. Any kind of liquid soap works for me (Dr. Bronners, some hand soap, whatever you have on hand.)
For the diapers, I really like our Little Lions flats. My husband finds them a little fiddly, but with just a little practice and a Snappi, I find that you can get a great fit. And they're all-cotton, breathable, easy to wash and dry.
Again, if you sew, you can come up with cheaper-or-free flats: I know people have made flats out of old/thriftstore sheets, receiving blankets, t-shirts - whatever you have. It's just absorbent material to catch pee and poo. It doesn't have to be fancy.
Anyway - I am all about old-fashioned diapering. There was a mama on here recently who talked about how when her baby was born she basically made all her own diapers out of rags, and held them up with a "belt" she made out of reclaimed elastic. I love it when people are frugal and use what they have. Very inspiring.