If you keep them in a "dry" bucket, then doesn't it 1. stink, 2. harder to get the business off, 3. get mildewy? (in 24 hours)

what do you guys do? do you clean off the business in the loo, and then put it in a bucket until you clean it? Do the above questions still apply?
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1. yes, when the lid is off LOL.
2. nope!
3.yes, the inside of the bucket gets 'wet'...i rinse it out with disinfectant when i wash the nappies.

yes lol :P

soaking supposingly soaks in the smells aswell...its just not necessary.

i would recommend going to 'all about nappies' , 'modern cloth nappies org' and the 'ozcloth nappies' sites FAQ for heaps of great info on drypailing and all things cloth.