There is an excellent section in the
http://www.incontinentsupport.org/primer_index.php diaper primer on the main site that will fill in a lot of blanks for you and I would suggest reading the section on cleaning them too.
In a nutshell, they are cheaper in the long run. I began using cloth about 6 or 7 months ago and by my math, right about now is when I would be breaking even. This is figuring in diapers, covers, and how I keep them clean. Also I can't use them everyday because I wear disposables at work so that is why it is just now breaking even. From this point on I am saving money and all my diapers are still looking great. I think I have one of my day weight diapers that is getting a hole in it close to where I use a pin. Other then that, I fully expect to get at least another year out of these, if not longer.
Biggest learning curve for me was to figure out a process to get them clean. I started out just throwing them in with the regular wash and it did not take long to see or more precisely smell that was not working. Now that i have a system, it is no big deal at all.