Baby will only sleep in my arms at night - help!

RA1109

My 1st LO was easy, he slept great from the beginning.  My 2nd LO is 2 weeks old and is up all night.  He wakes up at about midnight and stays up till about 2:30.  Then he's up every hour until 7am when he'll sleep for 2-3 hours.  Since I have a toddler and have to wake up at 7:30 anyway, I'm going to bed at 8-9pm and only getting a total of 3-4 hours of sleep.

I discovered by accident that he will sleep 6 hours at night straight if he is in my arms.  One night I was so exhausted that I fell asleep with him on my chest.  Now I've realized that he will sleep "like a baby" (ha!) as long as I'm holding him.  Otherwise he fusses until it eventually turns into screaming his head off.  I have tried putting him in his car seat, the little lamb infant seat, the little lamb swing, the fisher price rock n play, and in his elevated cosleeper.  Nothing works.  Even during the day he only sleeps a little bit in anything but my arms.

I asked my pedi what to do and he said "you can't spoil a newborn" and advised me to sleep with him on my chest, which I don't feel comfortable doing.  He also told me that I'm not "teaching" him anything at this point by leaving him to fuss.

Does anyone have any words of wisdom for getting him to sleep at night in his bed?  Mama needs her sleep!