I second the waterproof pad; we did that, too. Much easier. Get a few and you can switch them out and not worry about it.

Also, yes, don't worry about it TOO much. It smells bad, but it's not really harmful.

Finally, I use Huggies Snug 'n Dry for nighttime. They also make special nighttime diapers that hold even more, but I found the snug and dry was fine. I used generic during the day.