we have tried using cloth diapers with both of our girls & are unable to b/c they get terrible diaper rashes constantly. BUT, that is not usual (my girls & i have terribly sensitive skin).
whichever cloth diaper you do use, a toilet sprayer is very necessary & wonderful to get the poo off. with newborns who are breastfed, you really don't have to rinse the poo off much, though.
also, have you thought about cloth wipes? we have always used cloth wipes (they are more gentle on skin b/c it's just water). you would just wash them with the diapers...we bought the baby washcloths (the thin ones that are about 12 for $6), cut them in half (they don't fray) & voila: wipes that will last for years.
if you wash the diapers every 2 or even 3 days, you should have to worry about anything getting moldy. the whole system is actually much easier once you do it once or twice; for sure not as difficult as some people seem to think. (so, if your babysitter has problems with it, i would look for someone else ;o).
i'm not sure where you live, but there is a cloth diaper store in columbus, ohio. they do have a website: http://preciousdignity.myshopify.com/ ... the store is next to clintonville off of 71 & morse rd. anyway, her diapers are wonderful! they cost about as much as everyone else's do. i also really liked bumpkins.
there are websites & such out there to help you with figuring out the laundering (such as how much detergent, what 'stripping' the diapers means, etc etc). i just printed off some instructions when my #1 was born & taped it above the washer for awhile. drying them in the sun is the best for getting stains out.
i think you could just use a small prefolded diaper for a small small newborn. we didn't buy a size for newborn b/c our babies don't really stay in newborn size that long.
well, that's about all i can think of. hope this helps!