I swore I wouldn't cosleep because I was scared to death but newborn DD can't stand to be out of arms for more than a second so...we have been doing it since night 2. This is what we are doing - I actually move baby to whatever side I need to nurse her on at the time. Sometimes she is between us, sometimes on my other side. On my other side, i have the crib pushed up against the bed so if she suddenly rolls over, she won't end up on the ground. I have her lower than the pillows and my right arm is always over her head between her and the pillow. Sometimes my arm falls asleep but most of the time I am not asleep long enough for that to happen (she is not a good sleeper). I keep the sheet pulled up over my shoulders but we have king sized sheets on a queen sized bed so I can easily keep the sheet and comforter pushed down over her and still have enough for DH and I. I keep her dressed lightly and I'll wear a cardigan if I'm too cold over my nursing tank to keep my shoulders warm since the covers don't quite cover me up. Some say between the adults is not as safe, it depends what kind of sleeper your DH is. Mine is just as alert as me with baby in bed and neither one of us has ever come close to rolling over on her. The only thing I have ever been concerned about is I have pretty large breasts so I have to be careful if I fall asleep nursing her although she can pull her head away from my breast if she finds her breathing constricted at any time, I've watched her do it. I am still scared sometimes but I think this just makes me a little more alert, I don't sleep very soundly but I sleep better than I would if she were in her crib, mainly because I know she won't sleep. I don't know quite how to get over the fear entirely but all in all, cosleeping has been a much better experience than I thought it would be, mainly because I was just overanxious.
BTW, we tried something like the snuggle nest (a different brand) and it just didn't work. I had to move her everytime I wanted to nurse and she won't sleep unless she can feel me right beside her. There also wasn't enough room in the bed and both DH and I were uncomfortable. Its a great idea but wasn't practical for our situation.
Novel writing student Mama to ds (8y) and new DD 1-13-10.