I used cloth for the first bub and am using disposables for the second. Cost wise I dont think there is much difference (depends how you dry the cloth ones). I have found disposables to be heaps less work. Nappy pins freak me out and the happy snappers I found came off. I have heard there are other cloth nappies that dont need fasteners.

My first son would not of newborn nappies when he was born and my second was only in newborn size for 2 weeks so if you decide on disposable dont buy too many newborn size. Save your money up and wait and see.