This is my daughter wearing a Twilight Blue Bum Genius One-Size Pocket Diaper. It's not the greatest picture to show the diaper, but it does show just a few of the many "friends" that share her bed. Click on the link to get a closeup of the diaper itself. BGs are some of the most popular cloth diapers because they are easy to use and grow with your child.
We are starting to use more and more fitted diapers, which are NOT waterproof. They require a PUL, wool, or fleece cover...or paying really close attention to when your child has peed! I have some one-size fitted diapers that should work for the new baby as well as my toddler. Pocket diapers are great for older babies, but little babies go through more diapers than I'm willing to stuff.
A nice absorbant fitted diaper, like the one-size (OS) goodmama shown above, is a great way to let your child's bum air out. A coverless fitted with a nice soft organic bamboo velour inner, or a breathable wool or fleece cover, is a great way to make a mild rash disappear.
You can buy sized fitteds as well. At some point we plan on taking this newborn fitted off the bear and using it on a baby...