Have you read any books by Dr. Sears? His son is on "The Doctors" My son co-slept with me, and no it is not a "No-No" or a "widespread parenting violation". Saying that is a little extreme and somewhat offensive to many AP moms on this site. You just have to be safe in how you do things. Have you tried a co-sleeper or one of the wedges that sit in the middle of your bed? A pack and play pulled up right next to your side of the bed would work too. I would let my son lay on my arm in my bed and when he got a little older I would let him sleep in between my husband and I. We gave him plenty of room and made sure there were no pillows or lose sheets around him. I eventually transitioned him to a crib in our room. At 12 months we moved him to his own big boy bed and he was perfectly fine with it. No crying, and he has yet to fall off the bed (he's four now).
Definitely check out the Dr. Sears books. He also has a website http://www.askdrsears.com/. The site can give you information on how to make a safe transition or how to co-sleep safely.
Also, I could never let my children "cry it out". If you read into attachment parenting you will find that being there for your children when they are younger helps them to be more adjusted when they are older. Both of my children have adjusted very well to their rooms.
This is a very diverse topic with many sides and opinions, but in the end you have to do what works best for you and your family.
Here's a direct link to the co-sleeping article on Dr. Sears: http://www.askdrsears.com/html/7/T071000.asp