T.M.
I just saw your post and wasn't sure if you have figured it out yet, but I wanted to give you my input. My son is 2-1/2 years old and I too did not think he would understand the nuk fairy concept, but its the only one I liked. So I gave it a try. I started a week in advance letting him know that on saturday the nuk fairy was going to come and collect all his nuks for little boys and girls who didn't have any of their own. I would tell him this eveytime I would give him his nuk that week and also ask him during the day what was going to happen to his nuks to make sure he understood. Then on saturday morning when he was getting ready for bed I asked him to put all his nuks into a paper bag so the nuk fairy could come get them. He did this very well until the last one, then he needed a little coaxing. It took me an extra 1/2 hour to put him to bed without a nuk but that was the only night I had problems.
I had him put his nuks outside the front door. I told him in exchange for his nuks the nuk fairy would leave him a special gift. For him I acually had the fairy leave him a baby doll that pees and it is even anatomically correct (to help prepare him for potty training). Got two purposes served with the one mission. And he LOVES that doll and does like to have it sit on the potty.
He has never cried for his nuk, he did on occasion ask for it but I just reminded him the nuk fairy gave it to other babies that didn't have any and all he said was oh ya.
But the one and only downfall of the whole giving up the nuk is that he will now not take naps for me anymore. Makes for VERY long weekends, by 3:00 he is a crabby monster. He takes naps fine at my moms house (she watches him during the week without nuks either). I wish I would have waited until he was 3 just so I could get thru the winter first, since in the sping time he would have alot more time outside to wear off his excess energy and maybe take naps better. Its now been 1 month of no nuks and no naps on weekends : ( Hopefully I make it thru the long holiday weekends without my hair turning gray : )
Good luck and I hope this helps.