Cass- in regard to sleeping I always found that establishing good routines helped with getting a baby to settle. I used to give my babies a cuddle in my bed when it was feeding time but then put them back in the bassinette, as I felt this helped them to know that it was the place they slept. Mine would sleep in the bassinette in my room until they were too big for it too. and for the first 3 mths I would also have them sleeping in the bassinette in the day as well. After that I would put them to sleep in the cot in their own room during the day so they were used to it, and I found I had no problems with the transition from bassinette to cot, once they were too big for it. In fact I think that in the end we both slept better as I didn't lay awake listening and they didn't hear me moving around either. Also I found that putting them in their bassinette or cot in the day actually made them sleep for longer and it seemed that the better they slept in the day the better they slept at night, sleep is supposed to promote sleep.
I am pretty sure SIDs recommends no bumpers in cots too. My biggest issue with co sleeping for extended periods is that sooner or later a baby does need to sleep in their own bed and if the only way they sleep is with you then I feel that it makes it difficult to change their pattern if it has been a very long length of time they have been co sleeping with you. So saying when a baby is sick it does give youpeace of mind to have them close by. Most colds are viruses and people just get them, dont beat yourself up about it, what you are doing is right, just unfortunate that your bub has pickedd up the virus. Hopefully she is better very soon.

best of luck with everything