I only have a 3 1/2 month old but I have also been a nanny and have a cousin with twins (now 5) that I help out with... anyhow, we just got "The Baby Whisperer Solves All Your Problems" book and let me tell you - while I HATE her tone sometimes, a few of her methods have worked great for us, so far. We've had to pick and choose what works for our son, after some trial and error, but he was a terrible napper and was up every couple hours at night. Now he's started sleeping 5 - 6 hours at a time at night, waking for one feeding, and going back to sleep for another 4-5 hours IN HIS CRIB! It seemed like a miracle to me, but basically we are trying to follow a VERY loose version of her E.A.S.Y. routine (Eat Activity Sleep You) not including the clock watching for feedings. Before trying this routine he was sleeping with us in our bed about 80% of the time, co-sleeper 15% and on one of us because we couldn't get him to sleep for the other 5%.
We do NOT let him cry it out, but again, our son is much younger than your little one. When we put him to bed we do bath first, then a short massage if he'll tollerate it, then PJ's, darken the room and turn on quiet music, nurse (tank him up as much as I can) and then quiet time, pat his back until he's super sleepy and then put him in his crib with his little stuffed bunny and slowly rub his tummy until he's out.
Sometimes if I judge it wrong and he's not quite ready to go down, I have to pick him back up and couple times and calm him but it's working so far. Same routine for night waking, without the bath, massage of course. Try to remember they are only little so long.
Also - for a little background on me - I'm working full-time and exclusively breastfeeding/pumping for our son while my hubby is a stay at home dad, believe me - I know how important sleep is! Good luck!!! :)