A.C.
I wish I could give you a solution - but at least I can empathize! We are presently going through the same crisis. Our 2-year-old used to go to bed beautifully. Then we went on a week's vacation this summer that completely threw off the bedtime routine and we haven't been able to get her back on track. We did the "cry it out" method for over a week and couldn't take it any more - she seemed to get more frantic, stressed and traumatized ("cry it out" was the doctor's advice and he assured us it wouldn't take more than a few nights!). And she would wake frequently during the night. We were up all night listening to her and feeling guilty. So after a few weeks we finally just brought her in our bed, out of desperation and cumulative sleep deprivation. But she tossed and turned and kept us up.
So this is what we are trying now, and it at least seems to be giving us all some sleep (though not perfect). We put her in her own bed in her room at bed time and just sit there until she falls asleep. Then we put a spare twin bed in our room next to our bed and showed her that if she wakes up crying, she can walk into our room and climb in the spare bed. It's working better than other things we tried, but she still throws fits some nights.
I've been researcing this issue on other internet sights too. It seems to be a common problem starting at two. And no one has a good solution! Seems different things work for different kids. All I can figure is that there must be a big developmental leap that their little brains are making around this time that makes them more sensitive, emotionally aware, and susceptible to attachment anxiety, nightmares, etc..
My husband and I also work full time and we have a 6 year old (who is also awakened by all of this). We just felt that the most important thing was to figure out a solution to maximize everyone's sleep so we could all function. The lack of sleep was really turning the 2 year old into a terror during the day too, whereas she usually has an easy disposition when well rested. Therefore, I am disregarding all the "cry it out," "Ferberize," "don't ever let them in your bed," etc. advice and doing what works best for us!
Good luck!