I use microfleece wipes for poo - they can be used dry and the poo really sticks to them. Because we use cloth, it's no dramas taking some cloth wipes too when we're out. Microfleece (little additions) can be bought quite cheaply from Spotlight and I cut to a size that also can be used for liners as well. I use terry cloths to dry his bum with.

I also use the homebrand cotton make up remover pads as wet wipes - I prefer them to cotton balls as they are thin, have a bigger surface area, and do not leave threads of cotton wool everywhere. They are also (unlike name brand like Swisspers) 100% cotton. I have a wipes case that came with my nappy bag, and just fill it with pads then pour water over the top - that stays in my nappy bag and I have instant wipes! They are about 1.50 for a pack of 80, so much cheaper than wipes (but not as cheap as cotton balls or cloth wipes!).

Water is fine (actually better than most of the stuff used in wipes) but chamomile tea also makes a great wipes solution for nappy rash (very soothing). I keep a small bottle in the fridge for when needed, it's lovely cold (if your bub is used to cold water, mine is, but then we are in a hot climate. He loves the cold tea on a wipe).