Have a look on the ozclothnappies site for "frugal nappies" and they have a pile of stuff you can use, plus some patterns for turning old woolen jumpers into covers (bumjumpers) - there are a couple of ladies up here in the hills that do that and sell them for a pretty penny! A $2 jumper from the salvos will make a nappy cover

And the wool will keep the air circulating and when lanolised (just with some lanohsil) are brillo for nights etc ... and reduces nappy rash probability.