I am only new to cloth myself, so I don't have much experience yet - but I decided to convert before my new baby comes in May.
I bought a heap of BumGenius one size pockets so that they will fit new bub and my toddler. But I was still concerned that they might be too big for bubs. They say they fit 8lbs!
So I made about 20 flanelette squares (just bought the flanelette from spotlight). It worked out to be less than $1 per nappy. But you can also buy flanelette nappies from KMart etc. The flanelette is much less bulky than terry, but you need to use pins as a snappi wont fasten to them.
Then I bought a few PUL covers. I think I have 4 all up, 2 Bummis, 1 Motherease Rikki, 1 Motherease airflow. In either Newborn size or small. These will go over the flanelette and also terry squares. I also bought 2 Eenees Snibs to use as a newborn cover, but they look so "plasticy" I probably wont use them.
I was thinking I would use a "Jo" fold on the flanelette nappies. A terry flat I think I would just do a double triangle, or the one where the back of the nappy looks like a triangle, with a big rectangle of fabric running down the middle (I would have to look it up to check the name of it). But I agree, they look so bulky on a newborn.
Anyway, hope that helps - if not, at least it will bump your post so someone with more knowledge might see it
. Good luck with your new bub.