My babies have always settled more easily into something smaller than a full sized cot for the first 4-5 months. I agree they find the space of a full size cot a bit overwhelming at first. Also the mobility of a bassinette or cradle is very very handy. Luckily we discovered all this with our first when we were leant an old fashioned white wicker bassinette... it was also on wheels which made smooth moving around the house easy. After we returned the bassinette and planned our further children we knew that we wanted a similar arrangement so got a second hand cradle. Having an Emmaljunga pram with a bassinette attachment as well as the seat has also been wonderful.

Our 3 month old baby at the moment is sleeping mainly in the pram bassinette and the cradle... after his 3am feed we co sleep if he won't resettle into the cradle beside my bed (we do the same as Ali). We are now putting him into his full size cot for day sleeps which is working well.

So I highly reccommend borrowing or buying something smaller than a full sized cot for the first few months. Good luck.