I used cloth diapers on my 3 and 5 year old from birth until they were potty trained. I am expecting my third and will continue to use cloth. I purchased my diapers at Sears and Toys R Us. Found out they were thicker than diapers at Target/Walmart. I use diaper pins and vinyl pants. It is a lot of work with the laundry, but in the long run, you save a lot of money and it is better on the skin. You do have to change the diaper more often and I had to triple the diaper at night to prevent leakage. You fold the diaper differently for a boy vs. girl. Put more padding in the front for the boy, and more in the back for the girl.
We used cloth when they were younger, then went to disposables when they got mobile. I got tired of findng little presents on the floor that had fallen out of happy baby's britches while they were tearing around. We used cloth covers with velcro releases when we used cloth, so no pins, the diaper just acted like a liner. Worked well until they got too active.