I have a stretch cotton hotsling... it isn't very stretchy:\ Not nearly so much as the sateen one I had to send back for a bigger size.
Anyhoo, I put the padded part on the outside and you know how you fold it to make a tube? Well I fold it so that the part with the padding is about a third bigger than the inner side. I line the big seam up about the middle of my body, still working that part out to figure what we like best. Then I put Elaina on my shoulder with the arm that's shoulder isn't under the sling, open the sling with the hand of the arm that -is- under the sling, and slide her down in.
I hope that made sense :LOL
I have some pictures. You'll have to excuse the lack of shirt

; just took these to show DH at work cause I was excited I found a hold we liked.
http://comp.uark.edu/~awright/sling2.jpghttp://comp.uark.edu/~awright/sling1.jpg
What's way cool is that I can NURSE her in this hold!! Couldn't do that with cradle. I just lean her over to the breast that isn't covered by the sling. I have to hold her head but hey, it's better than completely supporting her weight with my arm and I can walk around! Yay.
Oh, and I haven't tried it with her legs hanging out - when I do I'll switch to having the padded side on the inner side.