>>lots of you do it -- how?? : )
Make yourself a pattern, try www.diapersewing.com
>>what fabric do i need??
The best free or super-cheap stuff you can find is best. Old towels, dishcloths, scraps of flannel, old clothes (tshirts and sweats), tablecloths. All should be 100% cotton. I make a pad for the centre part, then cut two pieces to fit my pattern and quilt (a rectangle in the middle, outline, then zigzag on my sewing machine). Easy as pie. Check out the bottom of my website if you want to see my diapers. www.kishkas.com
Covers are easy too -- the best ones I've made are from two layers of polar fleece with elastic in the middle. Also easy as pie if you have a sewing machine and a little bit of baby-free time.