D.L.
My now 5 year old had similar issues. What worked for us (and we still do on his "scared" nights) is to sit next to his bed. He listens to lullabies, and I agree to sit by the bed for 3-4 songs. Most of the time he is asleep by then. Each night we would try to sit further away from him to the point we sat in the hallway reading, but in a place he could see us. I actually saw this on some of the original SuperNanny's. I don't know why she got away from it. It does work. My hubby and I both liked the time to sit and read. So much so we would trip over each other to do it. "I'll sit with him tonight. No, honey, you go get some stuff done. I will sit with him..." As he got used to it and got more independent, he would just ask for the lullabies in the middle of the night instead of crying or trying to sleep with us. Nightlights help a lot, too. Good luck.