I had a friend suggest we let the "binky fairy" (or "paci fairy") do it. She saw it on the show "The Nanny". She suggested we hang a pic of a fairy on the wall and tell her she's a big girl now and it's time to let the binky fairy take it so she can get a new toy or a prize. The idea is to tell her to put it under her pillow (which it probably won't stay there), and then you take it while she is asleep and replace it with a doll or toy or stuffed animal, etc. Don't forget to take down the picture of the fairy too.
We tried this, except my husband was more bold than me. He put her to bed and took the binky and said he was going to give it to the binky fairy since she was a big girl now. I would've taken it while she was sleeping. I guess i was taking to long to find a pic of a fairy, as I kept putting it off another day because I was dreading the sleepless nights from her crying for it. Well, there was no picture of any fairies and no toy to give her in place of taking the binky, but let me tell you....it still worked. We blamed the binky fairy for it all. She asked me to tell her to bring it back and I told her I would try to call her(the fairy) to get it back, but since she's a big girl now the fairy probably won't. i got her a little doll the next day and gave it to her saying it was from the fairy. Anyway, she only cried 2 nights as she was falling asleep, but slept through the night just fine without it. We were very careful to try to keep her busy to keep her mind off of it and didn't bring up the subject at all. We just kept telling her how proud we were of her when she would ask about it.
Another tip...don't let her take a nap those days so she falls asleep easily at bedtime to minimize the crying. Also, give lots of hugs and reassurance of what a big girl she is. I was shocked at how easy it all really was. Only a few days and it was all worth it to save her teeth!! I truly expected it to involve way more crying. She was about 2 1/2 at the time.