I've used cloth for 3 children, exclusively with my first then a combo of cloth and disposibles with my next two.
Blow outs happen. In my expereince it doesn't matter what diaper you're using! Your baby is at the perfect age for leaky diapers, in a couple of months things will calm down no matter what type of diaper you're using.
I like cloth, I like not HAVING to buy disposibles, I like how cute the covers are and coordinating them with outfits, I like having a talking point at the park. I like disposibles, I like not HAVING to do laundry to diaper my baby, I like to throw away a used one in a public restroom instead of carry a wet cloth one in my bag, I like how they can hold all that pee all night long.
Most of my cloth diapers were free hand me downs from relatives or baby shower gifts so I have very little financial investment in them. I do a load of cloth diaper laundry every 3-4 days, my baby poops in the potty so it's just pee diapers. The washing machine is about half full. Right now with hot weather I hang the diapers on the line. So economincally, for me, I am getting off pretty cheap. I always have disposibles on hand and my baby wears one at night.
None of my kids dealt with diaper rash...I think my first had it some when she took a round of antibiotics at 6 months...my second never did...and so far my third hasn't had it. I made sure they all spent some time naked though, the best diaper for a baby's bottom is no diaper at all!
If you want to try them and are nervous, check out gdiapers, they are a waterproof cover that you can use either a cloth or disposible insert with.