Prefolds are notoriously unreliable, especially for newborn and breastfed babies.
Personally I would look at something like tots bots size 1 shaped terry nappies, nature babies diddy diapers, easy peasy bimbles or mothease sandys. The diddy diapers especially are not too bulky on a newborn and can fit up to around 18lbs which is anything from 6-9 months. size 1 nappies always have a good resale value as well as they tend to be less well loved than size 2s which have to do a longer time in service. You can get some very reasonably priced second hand nappies, or buy new and sell them on to fund your next size up.
I was using a mix of diddy diapers and tots bots and had 20 nappies and was washing every other day in the early weeks (when DS was pooping every nappy) and then every third or fourth day after that when he settled down to one poo a day.
for wraps, you can use wool wraps which are very breathable but need to be lanolised to keep them waterproof and generally seen as a bit of a hardcore real nappy users thing (I'm too scared to try them!). to be honest though, the PUL wraps that are around today are very good and are a far cry from old fashioned plastic pants. Most people who use cloth nappies don't have any problems with nappy rash from using PUL wraps. Motherease airflow or Poppolino popo wraps are quite baggy good for, well....airflow
Another thing to consider is that different nappies suit different babies, and if you happen to get the one that doesn't suit your DC's shape it can out you off cloth for life. When I started out I tried a few different types that I bought from a classified ad and from that worked out what suited DD and then bought more of those. Most people I know who use real nappies have a few different kinds in their stash, also for the reason that some clothes might warrant a super slim fitting nappy under them, or if you have a girl, lovely patterned wraps look great under summer skirts and dresses. Nappy sellers often do trial packs containing a few different sorts of nappies for you to try and will gove a discount off your full order.
Check out the for sale threads on here and ither parenting sites for some good bargains. Be warned though, it can be very addictive
sorry that was a bit long winded, but I hope it helps.....there is a lot of nappy chat on the real nappy chat thread on here, with some swaps and things going on as well.
Good Luck