Hi Karma, I just read your message and I really sympathise. My DS is nearly 2.5 now and only just sleeping well (mostly). His pattern when bad sounds similar to yours - he'd go down fine at bedtime, sleep for 3-4 hours, and then wake just when we went to bed and again around 2am, then up for the day at 6am. Over 2 years, this left us both so stressed and exhausted, it really caused a lot of problems for us. We tried a CC, just giving him milk whenever he woke, Phenergan, Vallergan, and eventually ended up with me taking him into bed with me and DH going to spare bed. Clearly not great! As someone else has said, obviously your sleep problem will resolve itself eventually, but when my GP said something similar, with "probably by the time he starts school", I decided to try again.
We just let him cry, going in only if he seemed really really hysterical, and then only to pat his head and lie him down again. No talking, no eye contact and no milk. Might as well deal with all the problems at once, I thought. A few times he cried till he was sick, and I just changed the sheets quickly and put him back (he immediately started screaming again, but I left the room anyway). Slowly, things improved. We still have nights where he wakes and cries a little, but 8 times out of 10 he settles back alone, and if we do go in, it's only to lie him down again and stroke his hair a moment or two.
I can't tell you the impact this one thing has had on our lives. The main thing that helped us stick to this regime was Richard Ferber's book "Solve Your Child's Sleep Problem", which I recommend highly. Nothing like as strict as Gina Ford, he really puts the problem in context and makes you feel it CAN work out. If you haven't read it already, do try and get a copy (can buy it on Amazon). I wish you all the best with everything. As for me, I've got a new baby due in 3 weeks, so I'm enjoying these last few nights of decent sleep (at last!) while I can...