Nick and I have been sharing our bed with Baby Jo since she was born. In the beginning she was sleeping on my chest (which I actually miss), and has since graduated to sleeping beside me. I can hear her little snorts and grunts so I know she's breathing (even though I still put a hand on her chest sometimes just to make sure). And I love not having to go into a different room to nurse in the middle of the night. It works for us. I've even noticed that she and I will often wake up at the same time during the night. We're in tune.
While all of this is good, in an effort to get her to sleep for longer stretches at night, we've moved her into the co-sleeper by our bed. Maybe she needs her own space. I don't know. We're trying it. We'll see what happens.
However, last night Baby Jo and I slept on the futon together since she was having an off night and I didn't want to disturb Nick. I was in heaven. It was so sweet. I couldn't stop looking at her right there beside me. I snuggled up next to her and put my hand around her little waist and fell asleep.
If you're interested, the Ask Dr. Sears website has a bunch of great co-sleeping info.