My son still has reflux problems (almost 4 years old), but we've been off the medication for 2 years now. what we did (we knew from birth about it), Was feed him only 1 oz of formula at a time, gas drops to help relieve the pressure in his tummy. Soy, not cows milk, and Reglen for a short while until his stomach started to behave some. I was unable to breastfeed, which everyone seems to agree is the best/easiest on infants with reflux, but we found that the Enfamil Lipil was the only type of formula my son could tolerate, and it made a huge difference in his problem. You may have to try a new formula every 2 weeks until you find the right match for your baby's tummy, if nothing else is working.
For sleeping, My son unfortunately inherited my insomnia, even now, but we found until we got on a good schedule with the meds, he had to sleep in his swing, or carseat, as they kept him in exactly the right incline for peaceful sleep. The Doctors really frown on this, but sometimes, you have to do what you have to do in order to get some sleep yourself. Even now, we use one of those elevating wedges for his bed (under the mattress), so he can sleep through the night (which he does most nights now).
I think the stats are that MOST Children outgrow reflux by age 1. However, it's not -just- an indigestion issue with infants, from my understanding, it's often that the sphincter at the top of the stomach/esophagus isn't fully formed, so acid keeps creeping up when the stomach is too full or gassy, and causes the vomit reflex.
Just hang in there! It does get easier, but makes you nutty in the process.