Denise, Mo is such a cutie! What an active little guy he is!
Ash, I had a similar problem with Owen. He would scream and scream any time we laid him down and would get himself so sick he'd throw up, so for the first 4 months he slept either on me or in my arms and no where else. DH was very uncomfortable with it because he was afraid Owen would get squished, and I was starting to realize that I wasn't getting any sleep because of it, so we had to make a change. It took us about 3-4 weeks, and it was very, very stressful, but life is much easier now.
The first thing we did was make a schedule for Owen and do our best to stick to it every day for a week or two. We didn't go out, we were always home at the same times for naps and bedtime, and we did everything possible to make that schedule stick. We also started doing a specific nap and bedtime routine. Our routine for naps is nurse, then cuddle time and sing a lullaby, then say a little prayer and lay him down. For bedtime we do a book before the lullaby, but it's otherwise the same.
We used a modified CIO much like Becky suggested, but we have found that we have to let Owen cry for a little longer than 20 min. as the max. One night I finally just turned the monitor off and buried my head in my pillow and cried with Owen. I felt like such a horrible, wretchedly terrible mother. And you know what, the next morning Owen was fine, and he gave me a big smile and just laughed like nothing had happened!
And honestly, the thing that really helped us was the Amby bed. I think that since Owen was used to being held, the curved shape and the motion of the hammock helped him feel secure and eased the transition from being held to sleep to sleeping by himself. Our next challenge (starting this next week!

) is to get Owen to sleep on a flat mattress so we can transition him to a regular crib. I'm guessing that it's going to feel a lot like that transition to get him to sleeping in the Amby bed.
But I know several people who have been able to get their babies used to sleeping in a regular crib after being held all the time, and they all told me the same thing: it will work; it just takes time, being consistent, and ear plugs!
