Pregnant with #4, due mid-Feb 2015.
We used cloth with the first two, then lent our covers to someone and got them back wrecked, so when #3 rolled around we went disposable. He was supposed to have been the last. ahem. Which would have made the investment stack up less.
This time I'm going to try cloth again, and have managed to pick up some lightly used ones from an online auction site for a very reasonable price.
Even when using cloth, though, I really use a mix of disposable and cloth - once they get beyond about 6 weeks, I use disposables at night as it seems to keep them dryer, and if we're out of the house all day, or away for the weekend or something then disposables are great. Also, if someone is babysitting, they get to choose which to use.
I prefer flats or prefolds with covers, but the system we've bought are pocket style. I'm thinking I'll just use them the same as a normal cover, without tucking the lining into the pocket, but I'll try it a few different ways to see what works. The great thing about it is that we'll be changing so many, that there's always ample opportunity for fine tuning :)