We got our little girl

when she was 16 weeks old (she had been sleeping with 9 other puppies and mom/dad dogs). We brought her home and tried all we could. She was downstairs in an area with a gate (which she climbs), comfy bed, heartbeat pillow (only beats for 5 minutes), my housecoat, potty pad (which she uses), food, and water. After several miserable nights, my husband finally agreed to allow her to sleep upstairs in our master bathroom with the gate. She wakes up at 12 midnight and again at 3 am. I get up, tell her to get back in her crate, and start her heartbeat pillow (while she gets on her back licking my hand to death). I go back to sleep, and so does she. My husband now wants to put her back downstairs as we've had her for three weeks now. I know now that I'm going to have to walk all the way downstairs to do the same thing where before I only had to walk in to the bathroom. He is insistent, though.
Our other dog (before he died) had gotten used to sleeping downstairs after only two nights. If he ever barked a lot, I would go down and let him out to poop. He couldn't stand to poop in the area (even though it wasn't his sleeping area).
She is a much more timid and sweet-spirited dog. She wants to be with me all she can. I just don't know if she'll be able to adjust. Any suggestions? I attempted to find an older wind-up clock to simulate the heartbeat. I also tried the CD with soft music (this was upstairs in the bathroom) but she still woke up every 3 hours.
Any suggestions????