If your DS is anything like my DD (who could get out of the tightest wraps like she was Houdini), the 'loosly' wrapping thing didn't work for us. What we did was initally, for her day sleep only, wrap her with just 1 arm out. Once she got used to that (over several days), we got her used to sleeping at night with one arm out. Once she started sleeping better (and it never took more than a sleep or 2), then it was her other arm, but still wrapped her body. Once she was used to having both arms out, for both day and night sleeps, we took the wrap away completley and haven't looked back since!

Good luck.