J.S.
We are just doing the potty training thing (first pee in the potty Wednesday!) and she is wearing Gerber cloth training pants, available at Walmart & Kmart for about $8/3pr. I've found it better to use them than to let her run naked as others suggest because quite frankly my house isn't spotless and I don't want her getting stuff all over her privates when she's sitting to play. So these work well for us but they definitely don't hold in any leaks - you'll get a puddle on the floor. which is sort of the point.
For going out we are using disposable pull ups, and still diapering at nap and bedtime.
Good luck!!