I went through the same thing with my son when he was about that age. I'd definitely recommend starting him out in a crib set up next to your bed. Just getting them used to that from co-sleeping is the hardest part. I wasn't into crying it out either, but I won't lie, the gentler approach is going to require a few sleep deprived nights on your part. I began by rocking and singing my son to sleep, then putting him in his crib. When he woke up screaming,I would go back to rocking and singing until he calmed down and fell back asleep, then put him back gently but immediately. I would repeat this as often as he woke up, which was quite a lot for the first 2-3 nights.
I have a few suggestions to help you out. First, many people don't recommend picking up your child when they awake, but instead patting them or singing to them while they're in their crib until they fall asleep on their own. This didn't work for me at all initially. He would scream the whole time I tried, and I think just that small contact was too big a change for him at first since he was used to sleeping next to me at night. It helped to just focus on settling him down any way I could, then making sure he spent most of his sleeping hours in the crib. Secondly, I definitely recommend putting him down as soon as he falls asleep. This might mean that he wakes up as soon as you put him down, and it can take more than a few tries before he goes down for good. However, I know when I did this, my son would sleep for longer stretches once he was down. If I waited to put him down until he was deeply asleep, as soon as he would fidget (usually within 45 minutes), he'd realize something wasn't right and be awake immediately. It was tough first few nights, but within a week my son was sleeping through the night in his own crib.
I wish you the best of luck. I think the no cry method is great, and it worked for me, but again I must warn you that it is a very slow process. After moving my son into his crib like I described, I then worked on getting him into his own room. After that, it was a matter of trying to get him to fall asleep on his own without all the rocking. That was the point when I started to just pat him and sing him to sleep, and it worked a lot better then when he was used to his crib already. Of course, you can take as long a break as you want in between each of these steps. Just make sure that once you decide to begin any one of these processes, stick with it. He'll want to get back into your bed, and at 4 am its easy to convince yourself that its not a bad idea. Trust me, in the end it prolongs the process considerably.