That was almost exactly how bedtime weaning happened for my middle child except that she was just past her 2nd birthday. I used to always nurse her to sleep at night (in her bed) and then lie her down once she fell asleep. Then, it just gradually happened that some nights, she was happy to snuggle with me to fall asleep instead of nursing. Eventually, she reached a point where either my husband could lie with her to fall asleep, too, so it didn't always have to be me. Everybody makes a big deal out of it, but it worked fine for us. (Yes, there were nights that it took her forever to fall asleep and I was sick of lying there so long, but overall, it was worth it.) Shortly after her 3rd b-day, she started being able to fall asleep on her own. She's now 5 years old and still likes someone to snuggle her to sleep a couple times a week, but she doesn't *need* us to do it.
I think you should go ahead with the lying down routine, but be willing to nurse if he seems to need it. Odds are that the transition will happen slowly -- first, he'll nurse to sleep 6 out of 7 nights of the week, and then he'll start skipping more days between nursing. Make sure that the routine is the same every night, too. If you don't light a candle every night, don't make that part of your routine (and of course, blow it out when you leave the room). You may want to try playing soft music (if that relaxes him) or just some white noise.
Personally, I never minded the nursing to sleep at bedtime because it was much quicker and easier than any other method. I felt like I could do the bedtime nursing indefinitely. If I wasn't home, someone else could find a different way to get my kids to sleep, and it was just fine.
My youngest is 2 1/2 years old, and I still nurse him to sleep for naps and at bedtime before putting him in his bed. It works for us, and I have no problem with it at all. When it stops working, we'll figure out something else.