K., you've gotten a lot of feedback, but I'll give you a little more I guess :) Dogs are great animals for kids, but as many of said, it is not a good idea to get a puppy at this age, unless you can spend every minute that the baby and dog are awake near them, because like my 17 mo. old they will tug on the dog and want to lay and snuggle with the dog and puppies are just too playful. Older dogs are harder to place than puppies because people want them all cute and cuddly, but in your situation, an older dog that you won't have to house train and that's used to kids is exactly what you need. I would scan the papers for people looking for good homes for older pets that are used to kids. The shelter would be great, as long as they know the animals background.
A few good indoor breeds to look for that should be good with kids are pugs, dachshunds, bassets (but they will bay), scottish terriers and their white twins the westland terrier, welsh corgies, and shetlands are all pretty reliable and good house sized dogs.