Sabrina,
I don’t know if you’re still having the sleeping issues, but if you look at the tucker sling, I think you could wrap your baby’s arms in it. I always leave my son’s arms out, but the sling/wedge made huge improvements in his sleeping. He was up every 2-3 hrs until we bought the sling at almost 4 mos. We also put him on his stomach after consulting with our doctor. That and at four months I started putting him down still a little awake and let him cry to sleep for a few minutes. It’s pretty easy to tell when they are crying out of pain or just protesting. Weissbluth recommends waiting until 4 mos in cases of colic to try sleep training, but not waiting much longer or habits will form. By about 5 mos he was waking 2-3 times during a 12 hr period and taking 3 naps. By 5 1/2 mos he’s taking 2-3 naps and waking usually only once during a 12 hr period. He rarely cries at all now when I put him down. So, there is light at the end of the tunnel even for really bad sleepers! You just have to do everything you can to ease their discomfort from the reflux (elevation, mylanta in night bottles, thickening if possible) and then be consistent with a sleep training method.