i did cloth diapers for the 1st 6 mos. my son had some skin issues that caused us to change, but i will definitely do them again when we have another baby.
i will save you a lot of opinion here and just answer your questions ;-)
outside of the house, i used Seventh Generation chlorine free disposables (which is what i use full time now). i was definitely not in to carrying a dirty diaper around, but i know a lot of people who do and they all have their different methods.there are several kinds of diapering "systems." kellymom.com is a good resource, but i found diaperpin.com to have the most nformation for a true beginner.i never had leak or blowout issues with cloth.good luck
I'm new on here but I thought I would chime in. We were going to do the cloth diapers but found the G Diapers instead. They are more expensive, but the people at Young and Restless said you can put a pre-fold cloth insert in them. We registered for the G Diaper flushable inserts at BRU and bought some used covers on craigslist at Young and Restless. We do have some regular disposable ones for the first month as they say the G's don't fit as well on tiny newborns.
You could use the cloth inserts at home and save the expensive flushable ones for when you go out!