There are hundreds of cloth diaper burp cloth tutorials out there on the web, so I won't be making this a tutorial. But I did customize them and do them differently than anything that I saw out there, so I will share with you how I did them.
I picked up a package of Gerber cloth diapers. I thought the center was too thick, especially if you were to add a strip of fabric on top of that (which I think is the most popular way to do these "Boutique burp cloths").
I folded the two sides of the cloth diaper in to each stitch down the sides of the center. Then sewed along both the old edge of the diaper and the new folded edge. This makes the diapers a little more uniform in thickness and also an nicer size to rest upon your shoulder. Originally the diapers were 12 inches wide (after a pre-wash to reduce the chance of shrinkage), after the two folds, they were about 8 inches wide.
Next, I added the fabric decorations (or you could use ribbons or any kind of embellishment that you like) to the top and bottom. This hides the uneven seams of the cloth diaper while leaving the bulk of the cloth available to catch all those little (or major) spit-ups. I did them double sided, so they look nice from both sides, rather than just one.
On this one, I included some little ribbon loops to one corner (like all those ribbon or "tag" blankies). I thought it might come in handy as something for the baby to play with or, for clipping onto the carseat or stroller so that it is always within reach.
So, there you have it. I'd love to hear what you think or see pics if you make any like this!