Ali slept in the PNP for the first 3 months. I wanted to do the same with Sam, but heaven help me the child is loud when he sleeps. All kinds of grunts and swallows and coos and crap. I don't know how DH sleeps through it (the PNP is on his side of the bed), but I can't. Most nights I give up and move to the couch. Kind of defeats the whole "co-sleeping" arrangement and leaves me wondering if he'd just be better off in his crib.
*yawn* 
Re: I'd forgotten how farking loud newborns can be when they sleep.
Ditto the white noise machine. We had one when we had Ruby in our room, and it helped tremendously.
lol...I might try that. As it is now, we have the ceiling fan on, a standing fan on, and both vent fans in the bathroom.