Teething *always* disrupts sleep around our house - no matter if it's the 1st tooth or the two-year molars. Ditto for growth spurts. Add to that big developmental changes like mobility (crawling, standing, cruising, walking)... and well, sleeping through the night is, hubby & I have our suspicions, an urban myth. ;) Or at least it's just the minority of kids that truly do this consistently. We seriously think that the majority of kids go through these waves of good sleep followed by waves of "bad sleep" which is weeks or months of nightwaking and then when you think you can't take it anymore, the good sleep returns.
So hang in there. :)
As for "cry it out" - this really, really depends on your baby. Some babies will cry for 5 minutes and be asleep, while others will be so distressed that they will cry for literally hours. I personally feel like I'd want someone to come to me if I were crying (whether due to pain, loneliness, tummy/diaper troubles), regardless of age - and it's important to remember that the *only* way your baby is able to communicate with you if they're in a crib at that young age is to cry. Please consider whether you want to ignore that communication. Lots of people suggest "cry it out" but I think those folks have kids who are more on the "asleep after 5 minutes" end of things. Plus, I really do think that parenting doesn't stop at bedtime (even though that'd be admittedly convienient). ;)
A really, really wonderful blog written by a practical, witty mom that talks about sleep in a realistic way that takes into account kids' ages/stages as well as individual personalities:
Moxie's Quick & Dirty On Sleep
http://moxie.blogs.com/askmoxie/2005/12/quick_and_dirty.html
Sleep Regressions
http://moxie.blogs.com/askmoxie/2006/02/qa_what_are_sle.html
Babies & Crying
http://moxie.blogs.com/askmoxie/2006/06/babies_and_cio.html