We're using diaper service: prefolds and Proraps. I HATE them! DD is tiny (just hit 7lbs at 1 month), and the diapers are so darned bulky that she can't put her legs together . . . they gap at the waist AND at the leg openings . . . the cloth diapers don't contain her poops too terribly well, so we are regularly having to wash the covers because the leg gussets are covered in poop. Unfortunately my MIL bought us six months of service, so we are kind of stuck with it.
I just found a Trading Post listing selling preemie Fuzzi Bunz, so I am going to pick up some of those and check them out . . . if they work well, perhaps we can find some way to "use up" the diaper service $$$--the service also sells swim diapers; maybe we can buy and resell?