I would advise going to The Nappy Lady website - its amazing and full of really useful information, she has a questionnaire you complete and she lets you know what you do and don't need. Also she has a group on facebook which is really handy and I've picked up loads of useful info.
I am adamant I will only use cloth nappies; have been since I found out I was pregnant. I have slowly built up my little stash of items, and you can get some real bargains (ebay, fb selling groups) which cuts down the outlay cost.
I'm a bit upset by the first comment on this; I'm a conservation biologist and the statement 'Environmentally speaking they are both as bad as each other' is simply not true at all. In 2004 a report was released that stated something similar. However; in 2008 a revised report was released stating the original report was flawed and the data was based on outdated nappies and techniques. It is consumers' behaviour after purchase that determines most of the impacts from reusable nappies. Most nappies can be washed at 40 (unless really bad), Don't tumble dry simple (the are better line dried or in direct sunlight anyway), ensure you always have enough in your washer as a full load. Most of the time an EcoEgg can be used for washing, so no harsh chemicals at all.
Yes they are cheaper in the long run, but that isn't the only benefit at all. it is better for your babies skin and better for the environment.