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Wallypop Diapering
Wallypop Babywearing
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Twill: The twill used in diapers is actually similar to the twill used for pants. It's usually used in prefold or flatfold diapers, but can also be used in fitteds. It softens with use, but will never be as soft as flannel.
Birdseye: Birdseye is a loosely-woven cotton used in prefolds. Cheaper prefolds use only two layers of birdseye, but numerous layers are needed to achieve satisfactory absorbency.
Wool: Wool comes from sheep. It's breathable, resistant to fungus and mildew, able to absorb a lot of water without feeling damp, and PERFECT for diaper covers.
Malden Mills Windpro Fleece: Fleece that has been specially milled to be water resistant. This is the gold standard in fleece for diaper covers. Will wick if compressed and the diaper is saturated.
Hemp: Hemp makes great diapers because it's a bit "greener" and is more absorbent than cotton. Hemp does not require as many chemicals as cotton does while in the field.
Flannel: Soft, brushed cotton.
Knit Terry: Loopy terrycloth sewn with a bit of lycra or other stretchy fabric to make it soft and stretchy. Think baby bath towels.
Sherpa: a knit terry fabric that has been brushed and washed to give it a fluffy softness.
Velour: Low-pile soft fabric that feels nice next to the skin.
PUL: stands for Poly Urethane Laminate. It is simply a knit or woven fabric that has been laminated with polyurethane to make it waterproof. Some people pronounce it "pull" while others call it "P-U-L."
Microfleece: Microfleece is polyester, so it doesn't absorb moisture. It's thin, though, so it acts as a wicking agent, pulling moisture from baby's skin to the diaper underneath. And it feels nice, too.
Suede: Suede performs the same functions as microfleece, but it's much thinner.
Microfiber: Microfiber is actually a poly knit that's made up of lots of tiny fibers. (micro fibers, actually.) These tiny fibers hold moisture between them, making microfiber good at quickly absorbing liquids.
  Burley Knit Terry: a knit terry fabric that has NOT been brushed - it retains the loops associated with terrycloth. 
Terry Toweling or Woven Terry : fabric most commonly used to make towels. 
Microsuede: Talk about soft! Microsuede is actually a polyester fabric, so it is nonabsorbent. It will wick moisture away from baby's skin and to the absorbent diaper underneath. The benefit of microsuede is it's utter softness.