K.C.
My son will be 2 next week, and we have been going through the terrible two's for a while. It hasn't gotten worse, the closer he gets to 2. I did the spanking thing, and like you said I think it led to him hitting. He is now telling us no constantly, he wakes up telling me no. He has started talking in his sleep and I swear the other night it was no mommy no. He says really mean like. The one thing I do that seems to get his attention is put him in time out in his crib. I have to put him somewhere that he can't get out and he is away from us. When he moves to the big boy bed, I'm going to have to figure out something else. I've also seen that if he does hit us or be really mean, then we will act like we are upset and almost crying and he immediately stops and says sorry. I then tell him that's not nice, bla bla bla.
I don't want a spoiled child either by any means, but it just gets to a point sometimes where you don't know what else to do. It's really bad when he acts like this in public.
Good Luck, and if you find something new that works let me know. :)