Our dog freaked out when we brought the LO home, he went totally crazy to the point we worried we'd have to re-home him...hysterical high pitched crying, howling any time baby made a noise, constant barking and wanting to charge at the baby (we had him on a lead). He'd never been around babies and children before. Now, 6 weeks later he's totally relaxed around the baby. We did the following:
-Took him to a relatives's house for the first few days and had him at ours for a little bit each day, increasing the time gradually. That gave us all space to adjust to the new situation.
-Initially when he was at ours for visits he was kept on a lead and allowed to sniff the baby and her things. If he got overexcited he was pulled back and given the "sit" and "down" commands. We gave treats and praise when he sniffed the baby calmly. This was repeated many times.
-Eventually he was allowed off the lead and came back to ours full time. Again, praised when calm around baby and reassured if she cried (which he initially found distressing).
-Baby and dog aren't separated, dog is included in family life (so if we're holding baby while watching TV dog is on the sofa too) but they're never left alone in the same room.
-If baby is put down during the day it's in the Moses basket or rocker. I'm normally sitting right beside, so not an issue if dog is there too but if I have to pop to the loo or something I just get dog to leave the room and close the door. If I need to do housework baby goes in sling.
-At night baby sleeps in next to me crib but it's not attached to the bed, we just use it as a stand-alone crib as I'm paranoid about the dog sneaking in there to sleep next to the baby and a accidentally suffocating her. We probably should've just bought a regular cot.