Hello,
just seen this thread. I've been usuing real nappies for my two year old since she was 5 months old - I meant to start sooner but was spoilt for choice with the range of real nappies and had a bad time trying to get feeding established.
I bought 12 birth to toddler nappies, 5 x wraps (+5 wraps in the bigger size), a roll of liners, reusable wipes, a pail and a pail liner (I launder myself and this means you don't have to pull them individually out of the bucket to put in the washer). If you are going to self launder and buy the nappies, I was really impressed with these people when it came to choosing the right real nappies for me:
http://www.thenappylady.co.uk/
My nappies are still going strong and will be used for our second child when it arrives in January. Using real nappies and washing them ourselves was only a pain for the first 2 weeks till we got used to it. Our nanny also finds them easy to use. You use a tiny amount of soap powder (too much can cause a rash) with a few drops of tea tree oil to sanitise them. I wash them on a quick cycle of 60 degrees every 2-3 days. (I rarely put them in the dryer, as i bought ones that dry pretty quickly themselves - even in winter, though we have one of those very useful pulley maids, so everything dries pretty quickly!)
I use disposables for full day outings and holidays, but i've estimated that on 2 children i'll be saving about £1000 on nappies and wipes, based on them using then for 2 years each, plus it feels good not to be filling up landfill.
Apparently, each disposable costs the council 10p to get rid of (can't remember where i saw that) so they should at least follow the examples of other councils and offer grants towards the initial buying of cloth nappies.
Hope that helps - it can be a bit of a mindfield when you are getting started, but it's really easy when you get going.