I am going to start out using flats too. I have some hemp prefolds, some terry squares, and some flanny flats, and am going to try them all out.

I bought a couple of PUL covers for putting over them, and some fleece ones for nightime, which didnt cost too much. Hopefully that should help with dryness. The girls in the flat nappy discussion gave me some good recommendations for covers.

Also, Oz Cloth Nappies is a good website. It has heaps of info, some folds on it, and good links off to other sites for folds too.

HTH