Reddit reviews Sleeping with Your Baby: A Parent's Guide to Cosleeping

there are benefits to cosleeping.

If it doesn't work for you it doesn't, but I jus thought you would like to read some research from the person who is the leader in actually conducting cosleeping studies.

Same for me. I am soooo much more well rested now that we bedshare because I don't have to fully wake up to nurse. Read this book - Sleeping with your baby - A Parents Guide to Cosleeping

Dr. McKenna's Mother-Baby Behavioral Sleep Laboratory is another great source for evidence-based and clear best practices (OP, you might not need this as much but I wanted to add this to the list of mentioned sites). I highly recommend it, as well as his book.

My parents did bedsharing with all of us, but even so I was a little nervous about the prospect of it! But after reading McKenna's book and browsing the website resources, I feel much more informed and comfortable about the prospect of bedsharing (if it works for baby), and ready to take on the naysayers because there's plenty of evidence that when done safely it's a great sleep practice!

Waterbeds! Uh no. Those would be a total hazard. You should really read this book about bedsharing to make sure your set up is safe. My lactation consultant recommended it to me.

I feel for you mama <3 I went through the same thing. Sleep deprivation is brutal. I don't have the time to post a long coherent comment right now (it's midnight here in Canada) but didn't want to leave without sending you a hug, and maybe a few ideas. First off, could your baby be high-needs ? (mine was, he's now a happy and healthy 3 year-old who still doesn't sleep through the night, like his mom and dad, who also don't sleep through the night ;) High-needs babies/toddlers have a more excitable central nervous system, and are notorious bad sleepers -- but in the end, they grow up to be as happy and healthy as their calmer friends. But that doesn't make things easier right now, does it :(
We have a family bed, and nursed / comforted him to sleep every single time. I know how hard it is. Maybe you can get some help during the day so you can take a decent nap, at least ? Maybe papa can take her on weekend mornings and go for a long walk with her in a carrier, while you catch up on zzz's ?
I will try to sign in tomorrow to send you some links, but I found this little blog post by Racheous from Respectful Parenting with several interesting links which are very attachment-oriented, as well as this one written by a mama going though the same thing. Evolutionary Parenting has several good articles on sleep training and its effect on infant development.
You can also get Dr James McKenna's book, Sleeping with your baby and many other resources that can be tailored to your preferences. Anyway... wish I could give you a hand. Please get help so you can rest a little. Parenting is crazy hard and was never intended to be done in solitude... We all need support. You're doing a great job mama ! Hang in there ! <3

I would recommend this book by Dr. James McKenna on cosleeping:

http://www.amazon.com/Sleeping-Your-Baby-Parents-Cosleeping/dp/1930775342/ref=sr_1_1?s=books&ie=UTF8&qid=1334509955&sr=1-1

He talks about safe co-sleeping and how to do it to ensure you're not increasing the risk factors for SIDS. Our baby never had the issue of spitting up and choking, if she did spit up, it would just sort of come out the side of her mouth. But, she didn't really spit up much while she was asleep for the first few months. Babies can at least turn their heads slightly to spit up and out of their mouths.

If you can't afford/find the book, the website for Dr. McKenna is also very helpful.
http://cosleeping.nd.edu/