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My children go to preschool and daycare, so of course they catch every illness that goes around their school. I got this Do and Don't list from my doctor and it works so well I thought I would pass it on. This can be modified for babies also.
DO's
Fluids: Pedialyte (or other electrolyte solution), gatorade or other sports drinks, water, diluted sprite, 7-Up or gingerale, or weak tea
Fruits: Applesauce and ripe bananas
Veggies: Carrots or squash
Meats: All must be baked, broiled or boiled
Can also have: chicken and RICE soup, gelatin or broths. Note that this is Rice soup, not noodle soup!!!
Don'ts 
No milk or dairy of any kind (unless nursing). If your baby is on formula, try a soy based formula temporarily.
No fruits other than applesauce or bananas
No green veggies
No fried foods
No crackers, toast or other wheat based products. (can exacerbate the condition)
If your child is vomiting and also has diarrhea, modify this diet for the first 3-4 hours to include only fluids. If the child does not vomit up any of the fluids, you can start incorporating other parts of the diet, starting with the broth or jello If your child tolerates this, after a couple of hours, you can give your child applesauce. Maintain this diet for the first 24 hours. If your child tolerates this, then you can start giving your child the other foods on the list. After about 72 hours, your child should be good as new.
If your child is an avid milk drinker and he/she really wants some milk, try giving them Silk- Very Vanilla (my daughter loves it - tastes like vanilla ice cream and is so good for them). It also doens't cause any problems if she has an upset tummy.
Do not stop nursing or giving your baby formula. Again, if you use formula, try a soy based formula. Also, between feedings, give your baby a few ounces of pedialyte to help prevent dehydration.
If your child vomits everything including the electrolyte solutions or if the diarrhea continues after 24 hours, your child may need intravenous (IV) hydration, which will require taking your child to the doctor or hospital.
I have seen other diarrhea diets on other websites, but this very simple do and don't list, works like a charm. Usually my children are better after 24 hours. I hope this helps someone.
Kerri