Hi E.,
I was in the same situation you were in. My daughter slept in a bassinet until she was around 3 months old, and then we moved her into a crib. I started bringing her into bed after her 3 am feeding, and we'd all fall back to sleep until we woke up for the day around 6:30 or 7 am. I don't sleep very well with my daughter in bed with us, so I was exhausted. At around six months old, she slept through the night in her crib for six nights in a row, and I thought she was done with night wakings. However, I was so insecure about my milk supply (I had some issues at the beginning) that when she resumed night wakings on night 7 I kept thinking she was hungry or something else and so I continued the night feedings. Luckily, my daughter usually only woke me up once during the night. At 9 months, my husband said "That's it, we have to let her cry it out." She cried for 15-20 minutes the first night, 5 minutes the second, and for about 5 seconds the third night. After that, she slept through the night except when she's been sick or teething.
You have to do what feels right for you. If you're not comfortable letting her cry it out, try Elizabeth Pantley's "no cry sleep solution". There will be much less crying, but it will take a lot longer. Letting your daughter learn how to put herself to sleep, and stay asleep, so that she gets the rest SHE NEEDS is the best gift you can give her. Personally, I believe that after a certain age, they learn that they get the company of mom and dad when they cry, and they learn how to manipulate the situation. I still nurse her to sleep for her naps, because when I've tried to get her to nap in her crib she cries for half an hour, sleeps for only half an hour, and then wakes up screaming again and is still tired (she'll go back to sleep in my arms if I nurse her). During the week, my sitter puts her in a pack & play, turns on the radio, and closes the door. She'll fall asleep on her own and sleep in there for 2 hours. She's learned how to manipulate me so that I do what she wants.
My child is going to cry sometimes - when she falls and gets hurt, when she doesn't get what she wants. I think it's unreasonable to expect that your child is never going to cry. As long as her needs are met, there's nothing wrong with a little crying (I'm not saying I'd let her cry for hours on end - I couldn't take that either). Those 15 minutes about broke my heart when we did it, but my daughter is fine now and regularly sleeps through the night from 8 pm until 6:15 am. She's into a severe Mommy attachment stage right now, and last night she woke me up at 1:30. I nursed her for a few minutes, then put her back in her crib, and she slept through until 6 am. If you're going to let her cry, do it now before she's old enough to remember it. I read a quote once that really stuck with me - "anything that's hard to do now is going to be harder to do the longer you wait to do it."
I highly recommend "Healthy Sleep Habits, Happy Child" by Dr. Marc Weissbluth. I know two people who used that book and have great sleepers (12+ hours at night, plus 2-3 hour naps, but they also started sleep training much earlier than I did). Be forewarned that he advocates crying it out, either with timed intervals like the Ferber method or with "extinction" (crying it out with no periodic check-ins). With my daughter, we found that checking on her but not picking her up only made her madder, so we don't go in at the timed intervals. What I really liked about the book is that he gives recommended sleeping patterns for each age group. When I read the book, I realized that my daughter had somewhat fallen into those patterns on her own, but I was just too nervous and unsure of myself to recognize her patterns.
Good luck to you with whatever you decide to do.