My baby was quite similar to this. Wrapping helped a little bit, but she still needed to suck to settle. A hammock helped a little too, but I actually had to wrap her, then bounce her, pop her in the hammock, and then rock the hammock. The sling was the real winner. So most of her sleeps were in there for her first 4 months, even in the mental Brissie heat. She's now a great sleeper, she goes right through the night and has two good day naps in her cot, so don't fret too much about "habits"
Haven't read all the replies but for us ds was like this because of his reflux, as soon as he went flat he woke up screaming. Once he was medicated and also elevated his bassinette there was a big difference, he finally settled and slept for longer periods at a time.
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