We did a modified Super Nanny/CIO - baby went in his crib and I pulled the love seat over next to it and one of us slept on the love seat, next to the crib, holding his hand. He had a crib at the time where the side went down, so we were able to kind of angle it. He would cry, we would soothe and pat and be right next to him almost all night long. Then we moved the love seat out and made up a pallet on the floor with a fouton mattress and blankets. Still soothing and patting through the crib bars. Then we got rid of the mattress and just sat next to him on the floor next to the crib, then we started moving farther and farther away from the crib toward the door. Then we were able to stand in the hallway and watch TV while he was in his crib, then finally we were able to just walk out and talk to him from the other room if he called out. OH the crazy things one does for love!
The key was that he didn't know where his bed was, meaning the safe sleep space that was his own, where he could sleep without interference, he didn't know how to fall asleep on his own, because we had been bothering him, waking him up even more - then it was compounded because we took over soothing him, without giving him a chance to figure out how to soothe himself. Did he cry during this time - A LOT. But he did learn to fall asleep on his own.
Give the new Ferber book a read, it may clarify for you just exactly what is the CIO method - that is really the wrong name for it, by the way. It is like giving your child vaccinations - painful in the short run, but oh so essential in the long run.
Good luck!