Our dd (now 2.5) was in her room from the day we came home from the hospital. We too had problems with space near our bed, and were using the carry cot from our pram, rather than a moses basket. I'm also a really light sleeper, and couldn't cope with all that snuffling.
We simply put the carry cot in the cot, so that it was a sensible height for lifting her out etc. (This seems to have helped the transition to the cot later on). We have an excellent monitor, which we kept on the super sensitive setting (although we could hear everything through the wall).
My husband was on the road a lot with work at the time, and as I was breastfeeding, and dd tended to settle well, there was no need for both of us to be woken all the time. I was also paranoid about falling asleep in bed with my dd whilst feeding her in bed (I had recurrent nightmares about squashing her), so I used to get up and go next door to feed her. It was actually quite nice pottering about - I had a drink and a snack to hand, and also got through most of the Harry Potter books over the months, if I remember correctly! We had a dimmer switch on her room so we could keep the light low, and I had a comfy chair.
All in all it really helped to keep disruption to a minimum. One benefit is that our dd has always been ok about sleeping in her room with the door shut, in the darkness (although I appreciate this may well change!).
I did get a lot of comments from other mums though - several seemed to be suggesting I was risking cot death, or was heartless because my baby would want to know I was close by. As I was in her room the instant she cried, I didn't worry myself about this though.