S.Y.
Wow, that sounds tough! Little kids are always testing parents but with the addition of a new baby, the dynamic changes a little. Have you considered:
a) Giving him specific things to do to help out with the new baby? Like, bring or open diapers, bring bottle, turn on music for baby, etc.? Our three year old really likes being given important jobs to do; he gets very excited and proud when he's done.
b) Finding alone time with him, without the other baby. Maybe 30 minutes a day to play a game of his choice? Giving him this quality time may be what he's craving.
c) Giving him choices? Our son is 3 years and 3 months old and everything is a struggle unless he has a choice. At first he got to choose his undies, which was fine. Now he has to choose his undies, socks, t-short, and pants. That's frustrating and time consuming for us but he gets to have some control and independence and getting dressed is now a somewhat fun and quick activity.
d) When all else fails, time out for three minutes? I don't send our son into his room because quite frankly, I'm nervous about what he'll do there. I typically put him in a time out for three minutes (one for each minute of his age) after giving him a warning. Then I'll take him from time out, explain what he did wrong, ask him to apologize, and then we hug. After doing this once or twice, he knows we are not kidding around and his behavior usually improves.
e) Ask him what's wrong. Pull him aside when he's calm and ask him why he's upset, agitated, hitting. He might just tell you - I miss daddy, I miss mommy, I don't like this other little person, etc.
In any case, these are all suggestions based on what has worked for us but we only have one little guy and have no clue what he'll be like when we have another baby. I'm hoping some of these suggestions will help a little. Hang in there and congratulations on baby #2!!!