Hey BG, I've got a F&P too but don't know what model. Its a couple of years old (we got it when I was pg with Natty - OMG sooooo glad we did that!). I wash the nappies on the eco cycle and have never had a problem. There was also a govt rebate because of the water-saving. Woohoo.
It has an agitator and yes, I find clothes do get wrapped around. I wash all my clothes on the gentle cycle though, as nothing we wear tends to get massively dirty KWIM? (Except after a camping trip, then they need a soak!) The ag is tough on DH's work shirts. I tend to soak those separately these days (also because they do get grubby on the sleeves and around the collar) then just rinse and spin them in the machine.
Lingerie bags are great for knitted stuff too. I don't think the ag has 'wrecked' any of my clothes, I just try to be gentle when removing them from the machine.
Happy white-goods hunting!