I use paper, always have and always will. I don't like the idea of litter for the reasons metioned above.
The organic litters like corn cob scare me the most, these things can start to grow mold very fast when they get wet and can be dangerous even if the bird can't get to it. It can happen as fast as a day if it is hot and humid out. I don't see these things as helping out by using previously unused materials, but more of trying to create a market where pet owners unwittingy put their animals in danger to pay for a byproduct of corn/walnut production.
I usually swipe free newspapers because I don't get any at home, and have my family collect some for me. But recently I have started using brown paper that fits my cages exactly and the smell does not bother me like the newspaper. The price is right and it is made of recycled paper and I don't have to removed staples before using it, so I will probably stick with it.
About the recycled newspaper products, I have seen small bits of plastic and what looks to be metal (shiny) in both Yesterday's News and Econo-Scoops. I would not trust that stuff unless they have upped their quality control and remedied this problem of including foreign materials. This was a few years back, so they may be okay now, but just keep an eye out.
I have also seen a product called Eco-Bedding, it is crinkled paper cut into strips that stays fluffy and springy even when soiled. A friend of mine uses it under her floor stand. It looks really nice and is easy to change daily, because it kind of balls up so you don't have to go at it with a dustpan until is comes to picking up the debris that has fallen underneath. I'll still stick to paper though.








