Hi M. K,
My daughter also went through this around 7 months old and it passed so hang in there!
The only thing I can suggest that others did not post is to try to keep her up longer between naps and maybe that will help her sleep longer. My 8 month old daughter stays up for 2.5 - 3 hours between naps and will nap at about 9:30 and 1:30 pm, with the aftrenoon nap being the longer one (around 1.5 - 2 hours). It took some work to get her on that schedule because she too was only taking 20-35 minute naps if I put her down too early. I also nurse her before the naps like I do for bedtime and that has helped as well.
One other thing to try would maybe be to nap and sleep her beside your bed in a pack and play before you try to transition her to the crib. The bassinet may be too small for her age because she may like to roll over and get comfy before falling to sleep. You could get her used to the pack and play by letting her play in it a few minutes during the day while you get chores done. That way she won't be scared of it. I also did this with my daughter when she was acting freaked out by the crib. I would just have her play in it while I picked out her outfits or organized her closet and it worked.
One last thing - when she is up in the middle of the night do not interact with her! This will only encourage her to wake up at this time every night, so try to ignore the babbling and just go back to sleep. She will eventually learn that M. doesn't want to play in the middle of the night.
I also follow Dr. Weissbluth's book and it worked for me. He suggests a bedtime between 6:30 & 7:30 pm, so I would start the nighttiume rituals a little earlier.
It's so hard to get back on track after a sickness because babies will continue to wake up for comfort like they did when they got sick, but you can do it!
Good luck!