well, the answer isnt an easy one. there is no easy way to deal with the crying. you are telling her that you dont want to respond to her, and that is upsetting.
i used to be VERY anti-cry it out. however, i read a blog post that helped me understand better. heres the link (and PS: READ THE LINK that she directs you to also!!!)
http://www.askmoxie.org/2006/06/babies_and_cio.html
the link she refers you to in the article:
http://moxie.blogs.com/askmoxie/2006/02/qa_what_are_sle.html
your daughter is obviously an increaser. you are not going to get any more sleep by forcing her to cry, it obviously only increases her distress, and she just gets more and more worked up. i know you are tired, i know you are frustrated, i know that it isnt fair. but ive had an increaser too and i literally know how you feel. my son slept with us, and it didnt matter, whatever arrangement got us the most sleep. he is 4 today !! and he still sometimes comes on in and sleeps with us around 4 am. who cares? one of these days hes going to be 13 and not want us to hug him anymore, im taking advantage of this time with my son that other moms arent lucky enough to get. :)
its up to you. you can do it or not. at her age, she is "old enough" to fuss a little. but it sounds to me like its far too much trouble to make her just increase in distress. she obviously has a need. likely its just a passing phase. when shes 3 and pulling miss snotty pants, you will only remember this time by how YOU felt about it; guilty or confident. in all parenting, make sure your choices are confident, down to the bottom of your heart for sure the right choices FOR YOU. (remember, in all things, especially when reading people's advice, YOU are the parent, and you have to do the best for YOUR family as i do for mine) :)
some other links: take what you want and throw out what you dont.
http://www.drmomma.org/2010/10/babies-arent-soldiers.html...
http://www.drmomma.org/2009/12/should-baby-soothe-himself...
http://www.authenticparenting.info/2010/02/do-they-really...
http://www.3daysleep.com/index.asp?ref=728x90MAMA
(i have not tried the 3 day sleep, its 29.95 and i have heard many good things about it if you are willing or interested.)
basically, my thoughts are that every parent has the instincts for their own child. really, are you getting any rest while shes in another room screaming? no probably not (and if you were, i would be MORE worried!). what do you have to do to solve the problem for your daughter and family? do you just need a night away ? find grandma or someone you trust to watch her overnight, and get away. they dont need to give you the play by play the next morning. find/get white noise. we found a great CD "for crying out loud" is the name of it - it has 8 nine-minute tracks that are each a different type of white noise. hair dryer, washing machine, windshield wipers, ocean waves, and our favorite addiction; the vaccuum. the key is to stop worrying about what "the experts", doctors, your friends, your parents or anyone else says, and find out what the problem is and solve it in a way that fulfills the needs of your family. a fulfilled need goes away, an ignored need turns into something undesireable. pick your battles, and remember your child is still a little kid; there are a lot of things she doesnt understand yet, and she is NOT a soldier! (see link above). you are in the position to affect the next generation of people, and regardless of what people say, our parenting has more of a direct affect on that than anything else these kids will experience. sending them out into the world with loving guideance is more beneficial than sending them out like a drill sergent.
do what is best for everyone. yes, you are going to be tired. anyone who says parenting isnt exhausting is a liar!!! parenting is the hardest, most exhausting, frustrating and draining job you will ever have! but it is also the most rewarding. for me, having a 4 year old that still snuggles, kisses, hugs, and who still wants me to be around while other parents around me are constantly fighting with their kids.... ill take what ive got over any other parenting style even if they 'got more sleep'. sleep disruptions are so so temporary. like i said, pretty soon you will have a 3 year old attitude, a confused tween, a moody teenager.... the better you know your daughter and her needs NOW at 17 months, the easier its going to be to read her needs later. i promise you, you wont regret following your heart and your needs (no matter what they are - even if they go against what ive said!!!).
YOU are the only ones given the exact instincts for your child. GO with them.