We are big fans of co-sleeping, I think it's good for all kids but especially sensory kids, I would not consider it a bad habit but you do need to be consistent and clear with your expectations I think so she's not having anxiety about getting in trouble of what's allowed and what's not. Our five year old is the one with SPD and she sleeps in her own bed that's next to our bed but she sometimes needs daddy to roll over and hug her in the wee hours of the morning so she can settle back to sleep and not get up too early. Our two year old sleeps in our bed. Yes we'd eventually like them to be in their own room and I"m confident they will but right now it's what they need it's an easy way for me to meet some of her big needs for lots of touch and connection and it gets everyone the best sleep at night. If you look back to more primitive cultures kids would always sleep with their parents as a way of ensuring safety. Children having their own rooms and their own beds is a very modern notion relatively speaking and may not be the best thing for neurological development. Humans are mammals and mammals tend to sleep in groups most of the time. There is a lot out there is google land here is a blogger I enjoy who discusses a recent scientific study re cosleeping http://www.drmomma.org/2009/07/co-sleepi...-with.html

I have no idea about the dog though.