I use the pine pellets. They work GREAT!! And they are cheaper. I buy a huge bag that's like 20lbs. for only $8.99 at PetSmart in the cat litter section.
I would suggest pine pellets over paper pellets. And if you clicked the link I gave you, went to the video and watched it, (click the blue underlined link that says Yesterdays News Vs. Pine Pellets) Im sure you will probably agree the pine is better than the paper :nod