We have used cloth diapers with both our kids. We started at 4 months with our first and at birth with our second. We used pocket diapers (mostly bumGenius, Fuzzi Bunz, and Happy Heinys) when we first started cloth diapering, but after about 8 months we decided to try prefolds. We have used prefolds and covers exclusively since then, and we love them. The pocket diapers or all-in-ones are a nice, easy way to make the transition from disposables to cloth, but after I got used to using cloth, I preferred the prefolds. I know some people who use prefolds from the get-go, and some people who stick with pockets or all-in-ones forever. It really is a matter of personal preference. I prefer prefolds for several reasons:
1) I like that only natural fibers are being used against my baby's skin
2) Because the prefolds use natural fibers (cotton mainly, though some use hemp or bamboo as well), they are easier to get clean and keep clean. The reason we switched from pockets in the first place was because we were having issues with build-up in the synthetic materials in the pocket diapers. Prefolds, since they are just a large rectangular piece of cloth, are very easy to clean.
3) They are much more economical
4) I find that we get less leaks/blowouts with prefolds than we did with pockets. Because we use a jellyroll fold with our prefolds, and then use a cover with double leg gussets in the elastic, there are essentially three barriers keeping the poo in the diaper (the fold of the prefold on the legs, and then double leg gussets). With pocket diapers, you have just one: the elastic. And oftentimes I found that, in order to stuff a pocket enough to have proper absorbency, the elastic gaped at the legs because of the inserts.
If you decide to go with prefolds, make sure you get some from a quality retailer. Do not just pick up what you find on the shelf at Target or Babies R Us. Gerber prefolds are not the same quality as what you will find online from a reputed cloth diaper retailer (look for Diaper Service Quality prefolds, most are made using either bleached or unbleached Indian or Chinese cotton).
I see you're in Salt Lake. There is a diaper warehouse (www.clothdiaper.com) in Sandy (9713 South 600 West). This is where we have purchased all of our prefolds, our Snappis (these are used in place of pins with prefolds, and make using prefolds very easy!), and some of our covers. They are the company that started "All Together Diapers," which is the brand of prefolds that a lot of other cloth diaper websites carry. You can get "seconds" (slightly flawed) for a very reasonable price. We have one dozen "first" quality prefolds and 2-3 dozen "second" quality, and I can't tell the difference. I love their unbleached Indian prefolds (seconds). They are so soft! They are only open M-F 9-5 or something similar, and you can't "browse," really... It's a warehouse, so you tell them you're order (check the website before you go in) and they go into the back room and pull your order for you. Then you can see what you are purchasing and pay. But we have been very satisfied with them.
There are also several other local cloth diaper retailers (online), but I'm not sure about what all their websites are. I know there is someone in North Salt Lake and someone in Riverton, and they both sell covers, prefolds, pail liners/wet bags, etc, and I believe you can pick them up to avoid shipping costs. Also, I know Nicki's Diapers (http://www.nickisdiapers.com/) has free shipping on all covers & pocket diapers. We have been pleased with the service there. I'm sure there are other retailers who also have free shipping...
As for covers, a lot of people love Thirsties covers. I find that they don't fit my kids very well. My very favorite cover is Proraps Classic. Cheap (about $7 each, compared to $12+ for most other covers), simple, effective. They have the double leg gussets and velcro, the newborn covers have a dip for the umbilical cord, and they just fit my kids very well. I also like Bummies Super Brites (but not any other. The Super Brites are the only Bummies covers that have double leg gussets. I only buy covers with double leg gussets because I just don't find single gussets or plain old leg elastic effective enough at containing solid waste...). The warehouse in Sandy does sell Bummis Super Brites...
There are a few retailers who offer a "trial." I know Jillian's Drawers has a trial offer, and it looks like Nicki's Diapers now offers one, as well. I don't know about the Nicki's Diapers offer, but I do know friends who have used the Jillian's Drawers trial (go here for for info: http://www.jilliansdrawers.com/products/clothdiapers/tryc.... You pay a deposit and then you get a mixture of pockets, all-in-ones, and prefolds, and you try them for 3 weeks. If you don't like them, you send them back and you get all but $10 of your deposit refunded. If you do like them, you keep them. It seems like a good way to get a feel for the different varieties/brands of cloth diapers.
For more information, check out www.diaperswappers.com and www.diaperpin.com, or check out my cloth diaper tutorial on my blog: http://yourfireyoursoul.blogspot.com/2007_12_01_archive.html