Have you ever considered taking your baby to see a chiropractor that works with kids and babies? This might be of dramatic help both for the reflux AND the sleeping problems! We have personally had some great results with chiropractic and our daughters. Good luck!
Here's an excerpt I found on a reflux forum; posted by another real life mom:
Our daughter was diagnosed with reflux when she was around six weeks old and was put on Zantac. Various people recommended we take her to see a chiropractor. Neither my partner or I had had any experience with chiropractors, so we were skeptical and didn't understand why people would be recommending this for her reflux. I mentioned the diagnosis and suggestion to our TMJ dentist and he agreed it would be very helpful. He explained that the Vegas nerve which controls the esophagal sphincter runs close to the cervical vertebrae. Sometimes the vertebrae can get out of place during a long or difficult labor (which I had) ! and this can effect the esophagal sphincter such that stomach acid will back up into the throat. At the first appt. the chiropractor examined her and found that one of her cervical vertebrae was indeed out of place. There was a huge improvement after just one appointment. We continued to take her to weekly appointments until she no longer needed adjustments. Within a few months of starting chiropractic we were able to reduce the amount of Zantac she was taking by half. By the time she was seven months old she was off Zantac entirely. Our pediatrician had never heard of this before and was really quite amazed. Our daughter is now 15 months and has no problems at all. ~md