I recently sat down and made some burp cloths for a friend. Well, I didn't actually make them, I just altered them to make them nicer to look at and perhaps a little more practical. All I did was cover some cloth diapers with flannel.
Sew She Sews was my inspiration.
I sewed most of the burp cloths using my sewing machine, but I also experimented with serging a few. Serging took much less time, but I think the sewed ones will hold up better over time. Perhaps I should go back and do a topstich around the ones I serged - just for added strength.
We pre-washed and dried everything because we know that cloth diapers shrink significantly after their first few washes/dries. They shrink and the shape distorts, making them difficult to work with, even after being ironed. The edges and lines aren't all straight and even, but I did my best. The Sew She Sews blog mentions that she never pre-washes and they turn out fine, so in the future I might try that. At least then the burp cloths will look nice for at least a few days, or until they get washed.