It depends on what type of cloth nappy you are using as to how you should care for them.

For example, the ones I use, they recommend dry pailing. It is okay to soak mine, but only in water, as soaking products would actually damage my nappies over time.

Also, for any poo stains, the best thing for this is to hang out in the sun. The sun acts as a natural bleaching agent.

Oh and i use a Little Squirt for the poos. Using the regular laundry tap takes too long and uses too much water.