G.,
I totally understand you not wanting to let your baby cry it out. I really didn't want to use that method with my son, but eventually that's what we had to do. I tried everything else first, including the book, "The No-Cry Sleep Solution". Bedtime is 7:30PM and our son wakes up at around 6 or 6:30 AM. He used to wake up once in the middle of the night and trying to get him back to sleep was a nightmare - milk, binkies, diaper change, etc. He'd be awake and think "Yeah, Mommy's here - it's playtime". Finally, he'd fall asleep in my arms, then as soon as I'd lay him down in his crib, he'd wake up and start screaming. Ugh. So, we decided for our health and sanity and for his, we'd let him cry it out. My sister did it with her kids and said that it would only be one night of hell, then he'd learn that nighttime was for sleeping and that he'd learn to put himself back to sleep. Well, it didn't take just one night. It took about 3 or 4 nights. I think he cried for about 3 hours that first night (we went in to comfort him a few times). It was torture for me. My husband tried to comfort me while my baby screamed. I just said, "Don't touch me!" My baby wanted me and I knew it. I knew that this was best for him, though. He needed to learn to sleep through the night. Next night, he cried for about an hour. Next night, maybe 1/2 hour (all in the middle of the night when he would usually wake up). Now, he never wakes up in the night. He goes to bed (usually without much fuss - perhaps 2-5 minutes of crying or talking, then conks outs). He has been sleeping through the night since he was 10 months old (or was it 8? I don't remember, now). He is now 21 months. Anyway, it will be really hard on both of you, and you'll have to be very strong. You'll be very glad you did it. Do it before you move her into a toddler bed!
Good luck!