Here is a picture of a diaper folded and ready to go. This one actually was a receiving blanket. (They make great diapers and are pretty cheap.) I believe this is called a kite or triangular fold. If you search on YouTube you can find lot's of videos showing various ways to fold cloth diapers.
Now I don't exclusively cloth diaper. I use cloth diapers when I am at home and disposables when I travel or am going to be away from home for a while. There is a great post at Simple Organic about how cloth diapering doesn't have to be all or nothing.
I don't find it to be any more difficult dealing with a poopy cloth diaper than a disposable one. I just dump the poop in the toilet and throw the diaper in the diaper pail. I wash diapers about every three days and I don't launder them any special way. I just throw them in the washing machine like any other load of laundry. I do line dry them in the summer like I do all my laundry. (The sun does a good job of removing any stains there may be.) In the winter I either hang them in the basement to dry or use the dryer. The nice thing about flat diapers is they don't take much time to dry.
My diapers drying on the line.
So that's my cloth diapering story. Like I said my decision to cloth diaper was mainly a financial one but I am glad to be also doing some good for the environment. If you are interested in cloth diaper check out all the great info at Simple Mom and just give it a try. It isn't as hard as one might think.