M.R.
You have a big decision to make based upon your mental/emotional/physical state and your parenting philosophy. It sounds like the two may be very far apart and you are going to have to make a big sacrifice one way or the other.
Many physicians and experts have done research on both ends of the 'crying it out' and 'self-soothing' issues. No doubt you will be able to find credible sources and information that support and refute both sides of the issue. You're going to have to go with your heart.
On one hand, if you are truly sleep deprived to the point where it is affecting your mental/emotional and physical state then you definitely need to start training your child to learn how to sleep and self-soothe on her own. Dr. Marc Weissbluth has written a few books that address these issues with practical techniques.
On the other hand, if you are a believer that your child needs you to fall asleep and you simply do not want to give up the comfort nursing or family bed, then you should look at the issue this way - yes, you are sleep-deprived but you can take comfort in the fact that your child is probably not going to be 13 years old and still sleeping in the bed with you. However, it will still be a sacrifice on your part but know that eventually you will get the sleep you need. Google Dr. Sears for information regarding this sleeping/nurturing philosophy.
Lots of people are going to give you advice and say things like "the family bed is TERRIBLE! give it up now - you're spoiling her!" or "you're an evil, mean mommy for making her cry it out - she's going to have trust and self esteem issues!". You need to decide what is best for your family and STICK with that decision. You should also know that children who grew up with parents who practiced both philosophies turned out just fine.
I have an almost 4 month old child. I decided early on that, while I want him to feel like he can trust that I will be there for him when he needs me, I also want him to learn how to self-soothe. So, if I were in your shoes and dealing with this, I'd go through the 7-day (or more...9 months of this routine will be tougher to change) hell of listening to her cry it out to teach her how to self-soothe.