I agree with having things settle down first before trying anything. As a mom who has tried both methods, one: tending to every little cry and two: cry it out, I believe that every child is an individual with individual needs. One method will not work for all. In my little one's case, he needed a hybrid of methods and a systematic gradual method. My son was waking up every two hours at that age as well. The first attempt at CIO was very difficult. Poor baby cried and cried. It was so heartwrenching! I tried, but it didn't stick. I then realized that rather than try to eliminate all of the wakenings in one night, it was best to tackle one at a time.
After this realization, it was easy. First, I made sure that my son had a full dinner, a clean diaper, and warm pajamas on. I had a bedtime routine: bath, play, read book, dim lights, soft music, rocking chair, cuddle... My son soon learned the routine and would crawl towards me at high speed when he saw the lights dim and heard the soft music. He looked forward to falling asleep! I cuddled with him and nursed him to sleep before putting him to bed. Sure enough, he was awake 2 hours later. I let him cry out the first wakening. Five minutes later, he was back asleep. Whew! The next four or five awakenings, I tended to him. I continued this until the first awakening had been extinguished. It took a few days to a week. Then, I aimed to eliminate the second awakening...and so forth, and so forth. So, it took a few months, but he was sleeping through the night at 12 months. Then, the hubby and I went on vacation for the weekend and left the baby with grandma. Back to square one. I followed the same procedures and he is now sleeping through the night again at 14 months. These days, he is well-rested and happy as a clam! YAY! Good luck! :)
P.S., I just read the post about the parents who lost their babies to SIDS due to CIO. Well, that's just awful! I was paranoid about it too so I often checked up on the little guy just to make sure he was breathing. I also have the digital monitor by Safety 1st that is so sensitive that I can hear him breathing.