Hi Jenny,
I work for Birmingham City Council and we have several schemes to help parents with using real nappies. I do appreciate your friend wanting to find a cheaper option than having to keep using disposables, and there are several different folds she could use, dependant upon the shape of the nappies/towels to start with. She could simply do a pad fold and open one end into a fan shape.
However, as she will be using these nappies on an older child, I wonder whether another option might be better for her - there is a brochure called Fresh and Confident, produced by Perfectly Happy People, which caters for incontinence problems. They have a range of real nappies and wraps that would be much easier to use. I hope this is helpful, but feel free to contact me at recycling@birmingham.gov.uk if you need any further information.