Do You Cloth Diaper?

If so, I need your help.  I am cloth diaper illiterate.  We had seriously thought about it when my daughter was born but found that we had to invest $350 into and just couldn't do it.  I still can't afford to invest $350 into it but I'm thinking that there must be some of you out there that didn't pay that much. 

Do you have tips?  What are your favorite diapers?  Do you do the covers with the cloth liners?  How many diapers do I need and how many liners? 

While I am not planning to review or share a cloth diaper event with you - I will share what diapers we choose and how it is working for us. 

Help a mommy out - I would love your feedback!