Homemade Baby Wipes
This website shows how to make baby wipes using paper towels, powertools, baby oil, and baby soap. (they dont explain how to extract the soap and oil from the baby tho)
Sounds like a cool project, I wonder how soft they are after using the baby oil and soap?
http://mobry.dyndns.org/~bhorling/projects/10.2003.wipes/
[update]
Daddytype.com suggests that “calendula oil, aloe gel, and tea tree oil” should be put into the mix per this websites instructions: http://www.home4birth.com/newborn/makeyourown.html