I have used both disposables and cloth, and currently using cloth now with my youngest. I would love to see more people, especially childcares and FDC use mcn more. For 2 main reasons, enviromentally and financially.

To answer your questions:

1. Would you feel this is ok (me supplying rather than the parent)
If mcn were supplied by either FDC or childcare (whichever I used) then I would be more than happy to use them. Providing they are washed according to instructions and changed frequently.

2. Would you be comfortable in your child wearing a nappy that had been worn by another child (of course, it would be washed between times)
I am happy to buy second hand nappies, providing they are in good condition, so no, I would not have a problem with this.

3. Would it be washed hygenically enough for you - using the normal mcn method of washing
Yes it would. I think it's a lot more hygenic to use cloth (providing they are washed properly) than disposables anyway.

Just a question for you: What are the council laws (in your area) for disposing of soiled nappies? I know for residential use here, and many other areas, we are not allowed to dispose of poo, it must be rinsed first. Is that the same for you? And if so? Because if it is, then you could point that out to parents as another reason to change over to cloth.