Hey L.,
When our daughter was born she slept in our room for several months, but as she out grew the bassinet we knew it was time to move her to her crib. We started out just having her sleep in her crib during naps throughout the day and she did just fine. Then after a couple of days we moved her to the crib during the evening. She did even better than we could have hoped. Then after a couple of months passed she started screaming when we would go to lay her down at bedtime. So we would hold her until she fell asleep, but that sometimes took hours. We didn't want to hear her scream, but knew something had to change, especially since number two was on the way. We talked to my parents and they had the best advice, and it was what their doctor had told them when I did the same thing as a baby. He's also the one that told them to have me sleep on my back (long before other doctors were).
He said to go ahead and lay me down tell me they love me, and then close the door (I was also about 11 months). He said to make sure that they could hear me but that they needed to leave me alone. It took two weeks but after that I would lay down without any fuss at all. The main thing to remember is that once you walk out of the door you can't go back in (unless it's an emergency obviously), otherwise they learn that crying will bring someone back. We did this with our daughter and while it took about 4 weeks (for consistent results), now she goes to bed without fussing, gives us kisses, and waves.
You have to remember that they aren't hurt or afraid, they simply want mommy and daddy. We purchased a video monitor with night vision so that we could see her and know for certain that she was all right. That way if she started crying we could make sure it was just an angry cry, not a hurt one. It's hard because no one wants to hear their child cry, but it's worth it in the end. She sleeps better and has time to herself, which is actually very important for development. Besides, you don't want them sleeping in your room several years from now.
The "cry it out" method is not something that works with infants since they need frequent attention, but toddlers are a different story all together. It's just like when they want something they can't have. They cry until they realize you aren't going to give it to them, and then they just go on to something else, perfectly fine and happy.
Just be strong, read stories before bed time as a way to down shift, and spend lots of time cuddling before bed. Then tell her you love her and will see her in the morning. Again I would really recommend the monitor.
I apologize for the length of this, but didn't want to seem like I found it an easy thing to do. It was really really hard. But after all is said and done it was well worth it. Regardless of how you manage it, good luck, and remember that each child is different. You will all get better sleep and it will be healthier for all of you.