I remember feeling exactly the same way!!!!
In our house I use the prefolds pretty much exclusively and DH uses the fitted with a cover or the all-in-ones (AIOs are basically an outer waterproof layer and an inner absorbent layer(s) sewn together). The AIOs are the easiest for those that are intimidated, since you put them on pretty much as you would a disposable. They do tend to take longer to dry though.
The least expensive route is to buy prefolds and diaper covers. Some people are a bit daunted by this (I guess they think that folding them is difficult), and in some cases, with runny breatfed poop, you do occasionally have a "blow-out"--but I've seen the same happen w/ disposables on breastfed newborns. If you can figure out how to fold a towel a couple of ways, you can use prefolds... This is the site I used for directions on various folds--it's really not hard:
http://diaperpages.com/pf_folds.php.
For covers, and good priced prefolds, call the ProRap company. Ask them about ordering "seconds" (these are products that may have very slight cosmetic glitches). I got 8 covers for $4.50 each, and I was very pleased with them & the prefolds I bought from them (no seconds available for prefolds when I ordered, but their prices for prefolds were still really good).
Other options:
If you have anyone who can sew and wants to gift you something for the new baby, (or if you can sew yourself), you can sew up some fitted diapers pretty darn easy. I used & liked the free Mama Bird pattern; there is are several others out there, as well, like the Rita's Rump Pocket. You can also sew covers out of old wool sweaters (google that; I don't remember exactly how it's done, but it's not hard either! :)
And don't be afraid to ask around--when I was expecting, I posted that I was looking for cloth diapers on Freecycle (www.freecycle.org) and got 6 newborn prefolds and 12 AIOs (homemade fleece ones). I was so excited. If you don't get a response to that, you might be able to more easily get a response to a posting on sewing supplies (flannel, velcro & elastic are the basic materials for most homemade fitted diapers). You can order the PUL (material used for the outer waterproof layer of commercially made AIO) and make your own AIOs or covers, too.
I've also bought some used fitteds and covers from www.myuseddiapers.com. For used prefolds, see if there is a commercial diaper service in your area, or nearest metro area--they will sometimes sell their slightly stained (but clean) prefolds at a discount, since their customers usually want pristine looking prefolds.
If you're not sure what kind(s) you want to go with, you could try one of the "starter" packages that have a couple different kinds to try--usually they have some prefolds, some fitteds and a couple of AIOs, plus a couple or three different covers to try. A friend of ours did this before deciding.
A lot of the brand manufacturers have information on sales/seconds on their websites or you can sign up for info on sales/seconds through their email lists. Kissaluvs does this (via email list), and I'm sure others do also.
There is actually a book published on cloth diapers, which I got from the library. I think it's called "Diaper changes" by Theresa Rodriguez Farrisi. It covers a lot of the different options and talks about the costs and has some resources listed in the back.