Hi J. - oh the fun days of toddlerhood!!! I have a 5yr old son and also a 22 month old that will be transitioning to a bed soon as well. They are so alike and so different all at once, I'm not sure what to expect the second time around. Hopefully my experience from our first will help you.
First of all, let me say that you're going to get a lot of people telling you the "right" way to do this, but just remember that the way you choose to help your daughter transition into her bed is the right way to do it. You're the mom and mom always knows best.
I personally have never liked the "cry it out" philosophy for the little ones - I wanted my kids to always feel safe and secure and never abandoned. It didnt make sense to me - they cry when they need me so I let them cry longer which makes then angry and insecure so they cry even harder and longer until they finally reach a point of resignation that I'm not coming and they give up asking?? bleh. (older kids are another story - when my son was 4, "crying it out" was often what he needed to help him vent and get through a tantrum.)
Back to bedtime - First off, my husband and I decided in advance that our kids would never sleep with us in our bed or even in our bedroom. It helped to set a ground rule so I wasn't tempted just to pull him into bed with me. It was important to my husband that our bed was OUR bed and I wanted to honor that.
From the beginning, we made bedtime and anything to do with the bedroom a 100% positive and fun experience. Timeouts etc. were never done in the bedroom. The bedroom was always promoted as a fun, safe and secure place to be. We kept to a routine at bedtime - after washing up, we read books and then sung lullabies with the nightlight on until he got really really really sleepy, then I would sneak out. This was a lot like when he was an infant learning to sleep in his crib. We set the rule with him that he had to stay in his bed. We also closed his door and kept the hallway dark so he would be less inclined to venture out of his dimly lit room into a dark hallway to come into our room.
I used afternoon naptime to start the process of teaching him to go to sleep on his own. At about the same time every day, we read one book in his room, sang one song, and then it was time for nap. I tucked him into bed with his special bear and blanket and then left the room and closed the door. If he cried or called for me, I made a point to run up to his room as fast as I could so he knew I was available. I would spend 15 secs checking diapers, etc. then tuck him back in bed with a kiss and the statement that it was naptime. I also never took him out of his room to let him sleep somewhere else. It was always in his own bed, even for naps. I didn't sweat the fact that he got out of bed to play with toys as long as he stayed in his room because I figured it was his way of winding down and getting sleepy. Plus - it was still quiet time for mom! A couple of days went by where I would find him asleep on the floor and I would put him back into bed. One day, I decided to just let him sleep where he was even though he was facedown on the carpet, no blanket, etc. I was curious if he would learn anything from it. I purposely did not say anything to him when he woke about sleeping on the floor nor did I enable it by covering him up, etc. Later at bedtime, I talked about how nice and comfy his bed was and that if he got out of bed, he could just climb back in if he was tired. No condemnation just equipping. He only slept on the floor that one day. He still got up to play with toys but since the door was closed and he stayed in his room, I didnt bug him about it. He always got tired and napped. Especially at first, I allowed plenty of time (2 1/2 - 3 hours) for him to get to sleep and then to have a good nap. I rarely rushed the process and didn't overschedule.
Were we "lucky"? you bet! But I also think I did the job I set out to do. I established in a loving, reassuring, and non-condemning way that "I'm the Mom". I kept it positive, set simple ground rules, kept consistent no matter what, allowed him to feel some consequences like waking up with "carpet head", and I was matter of fact about sleeping in his bed - no high emotions, coercion, fights etc. We gave him a lot of love and reassurance. We never threatened him with a "get to bed or else!" or told him that it was time to grow up and be a "big boy". We just set the rules and helped him to follow them.
Sorry about the novel! I hope this helps you and that you and your daughter have great success!