First off, I want to say how awesome it is that you're nursing him!
Secondly... sometimes babies have sleeping troubles when other things are going on... like you said, he had a cold... but, maybe now he's teething? My youngest had his first tooth erupt when he was 4 mths old. I'd suggest Hyland's Teething Tablets. They work well and will not harm your child; its homeopathic. It will calm him down; you'll be amazed.
Thirdly, I have 3 kids, I've NEVER let them cry it out, no matter what age they are. They also slept with me; its just easier that way, esp. when you're nursing them. There's nothing wrong with co-sleeping/bedsharing as long as you aren't inebriated or on sleep-inducing drugs. Just like you know not to roll off the bed unto the floor, you'll know not to roll over your baby. If you want to, you can either get a co-sleeper bed or do like we did, and take down one of the sides of the crib and push our bed up against it. That way, the baby could be far away enough so as not to harm him while you're asleep (if that is what worries you - we did it to have more room; we only have a full sized bed) or if you want him to sleep on his own, just put him in the crib on the side of your bed and get back in your bed; still close enough to attend to him fast. Know what I mean? And I'm not single. Their dad and I are still together and he works 5 days a week and he's not sleep deprived because of our sleeping arrangements.
When you're a nursing mom, your baby will need to nurse more often then moms that formula feed because of easily breastmilk digests (which is a great thing).
Oh, also, your baby could be hungry... he could be going through a growth spurt and needing to nurse to up your milk supply (supply and demand).
I also don't believe that baby's manipulate us. They cry because they need something. If its not hunger or a diaper change, it could be they just need comfort. We are human and we do need comfortering, even as babies.