The Dreaded 4 Month Sleep Regression

Today poor Matt went off to school bleary-eyed after only a few hours of broken sleep, and I am foggily moving through my morning routine with Miss Savannah. It seems that our little angel girl is going through the dreaded 4 month sleep regression. Last night went like this: to bed at 7, up crying at 7:40 and 7:50, up crying at 10:40, nurse at 11:00, up until 12:00 because she refused to go back in her crib, up at 4 to nurse, and then sleep in Mommy's bed from 4:30 to 7 because I was so stinken' tired I couldn't even think straight! Once Savannah settled back into her crib at midnight, I stayed up until two, wondering what in the world we were going to do with her?
The pediatrician thinks we need to let her cry for short bursts of time, increasing the time each night until she can finally put herself to sleep (basically, use the Ferber method.) He also suggested that we stay home for the next two months (avoiding traveling) and try to keep a consistent bedtime routine, really focusing on this little issue. Her doctor also thinks I need to wean her off of nighttime feedings - this is something I will not do. I do think she still needs to nurse once or twice over the course of the 12-hour night. I've consulted numerous friends and gotten lots of helpful pieces of advice and also lots of different viewpoints on the matter. Basically, there are lots of different approaches we could take to help correct her sleep. Even Matt and I are butting heads over what to do here; he wants to take a more "tough love" type of approach, and I think she is still very young and needs us to be more sensitive and attentive. **sigh**
Anyway, today I am going to gather as much information as I can on this dreaded regression and read up on different ways of dealing with it. All I know is, we've got to start getting better sleep around here. Even little Savannah is cranky! Also, I think we (really, more so I) have created some bad habits - she is dependent on both me rocking her and her pacifier to get back to sleep. This will be the hardest thing to correct.
If you think of our little family, pray for us!! :) Seriously, I am praying for wisdom in how to teach my daughter better sleep habits, and would appreciate any prayers that come our way on this topic! I'll keep you all posted on how things turn out!