We use cloth during the day, and disposables at night or when we're out.
the main motivator was cost. The cloths were expensive to buy (about $90 for 3 doz) but I laybyed them at Kmart during the 15% off storewide sale, so that made it a bit easier. I think I worked out (when I was really keen once!) that the cloth nappies paid for themselves in 7 weeks (ie. 7 weeks of disposables). I buy the JOhnsons liners which are about $7 a box of $100, but they last for about 3-4 weeks. Plus Napisan to soak them in, but it is still alot cheaper. I also use Curash powder at every change to help keep her dry.
I find with the cloths, I tend to change her every 2 hours, wheras, Imight go 3 in a disposable, but it's not a big deal. Plus, the bonus is it's better for rhe environment long term. And if you plan on having more than on child, you can reuse the cloths.
Using cloth during the day means I can afford to buy better quality disposables. We use Huggies, which would be far too expensive to use all the time, but are really good nappies, especially as my daughter has quite sensitive skin.
Mum to Maya Grace 02-03, Sienna & Mercedes 10-06