Sydney sleeps in her crate (with a sheet and a pillow of course) and she has slept through the night pretty much since we got her. She cried a little (maybe for a half hour) the first night. And for about the first month we had her she would wake up and cry if one of us went to the bathroom in the middle of the night. But other than that she is good about it. She will be 1 year in a couple of weeks and now most morning she doesn't want to get out of her bed (and that's after sleeping for 7 straight hours)
I guess I was lucky with that one...but then again...we have other problems