We've used both disposable and a few brands of "cloth" diapers, including what's considered by most to be the top product, Bum-Genius (we have 30 of them). Most brands of disposable diapers put every cloth product to shame when it comes to absorption. There's no contest.

You can argue the environmental impact and costs, since there are a lot of variables. I like to think cloth is better in both these respects though.

The biggest down-side to cloth is absorption and having to do a lot of laundry. The biggest downsides to disposable are cost, storage until garbage day and the landfill. 'Garbage' is only picked up in our town once every 2 weeks.