I used cloth diapers with my twins until they started really crawling. At that point, the bulk of them caused the diapers to rub so much on their active little thighs that the tender flesh as just bright red.
They have the best diaper "systems" now. I used Fuzzy-bunz, which have a breathable, waterproof, soft outer layer, and then I just stuffed some cloth diaper fabric in the little pocket for absorption. They had all kinds of snaps for adjustability. Fast and easy to use, no leaks. Even dad could do it without whining.
I washed them really well every 3 days. If it was sunny, I would line-dry in the sun, and all stains and stink would completely disappear. I remember I had a trick for deodorizing without sun too, but I can't remember what it was.
Initial investment is pretty high for the nice, modern, easy-to-use diapers. However, when I was done with them, I sold them on eBay
for more than I paid new. Apparently, they're more popular when they're "broken in" and soft and absorptive.