Hmmm, some good advice and some inconclusively sound advice I've been seeing.
First up, distilled water: absolutely fine to drink. Regarding giving babies water, as Tim stated...Grandmas often say yes...but it is a big big big big big NO! Water offers no nutrition to a baby which they so desperately need in the early months. What they need at all times is breast milk (as the ideal) and formula as a far off second. Water fills their tiny bellies and reduces their overall feeding reflex for a time until the lack of sustenance causes them to wig out in a total hungry frenzy. They need the fat and proteins from the milk along with the free floating glucose as a quick pick me up, but the fat is the big deal there. If a child is showing sings of dehydration...often times because of poor milk flow from the mother or a poor latch on the nipple of the mother or bottle, then it is best to contact the pediatrician for help, and the Laleche league (is that in the US?) or something similar with his an awesome source for breast feeding issues.
Regarding SIDS, co-sleeping is on the rise because co-sleeping is known to REDUCE SIDS. I read along with my wife, gosh, at least 40 papers and long term studies regarding SIDS and co-sleeping. Rolling on a child is NOT SIDS. This is called suffocation! If a person is stoned, drunk, or horribly obese, sure don't co-sleep but these have nothing to do with SIDS.
SIDS is almost always associated with children in cribs or playpens (hence it being nicknamed crib death) and the absolute cause is not entirely certain. Not every child is prone to it, but every child could suffer from it. This is a major difference. I might get cancer, but my wife's family has a rather devastating history of it. So the likelihood of her getting some form vs. me with no history of it in my family, is greater.
It is known however that homes where the parents smoke or use heavy perfumes/colognes seem to have a higher prevalence of SIDS. This is indicative of an inflamation of the nasal passage and down towards the bronchial tract. Of those poor children who died of SIDS, some studies indicate that upwards of 75% of them had smoking parents.
My wife and I co-slept with our son until he was 2.5 and then when our daughter was born we started to co-sleep with her. The sleeping with our son was very good and he still sleeps in our room most nights (he has a toddler bed on my side). My daughter however is quite a restless sleeper and really tried to take over the bed. She needed to be in a crib once she hit about 14 months. My wife still goes and gets her though every now and again out of nostalgia.
I don't have the studies handy but I can get my wife to list them out, she's completely intense about all things babies and has all the stuff in a database I made for her.
Co-sleeping works for many families and was the preferred sleeping arrangement for humans until just about 100 years ago. Think about that, pretty well all mammals and humans up to about 100-150 years ago co-sleep/slept with their young! It makes sense, a baby spends 9 months growing inside of a warm cosy secure environment, hearing mum's voice 24/7, feeling her and smelling her. Then, out through this dark tunnel into the light and BAM! whisked away by women in white, off to a cold sterile bed, no matter how warmly and tightly they are swaddled. Wrapped in blankets they are sent off to a nursery stuck with rows of other newborns only to be rejoined with their mother at feeding time and when the "okay" has been given by head nurse.
This practice thankfully has mostly been abolished in the US and Canada over the last 20 years and now not only are babies immediately dropped to a mother's chest to get her body heat, smell her, hear her, but the babies are mostly kept in the room with the mothers (at least in Canada) unless there is a serious medical condition requiring either the mother or child to be isolated.
Then once home the parents have an option...send off the baby to be alone for hours upon hours or, co-sleep with the mother there right by their side, about as good as it can get. For those women endowed well enough to "side nurse" they don't even have to be fully awake during night feedings. If a bottle is the chosen method during the night feeding, a timed bottle chiller/warmer can setup in the room ready for mum or dad to feed the child without having to move from the bed.
Co-sleeping is natural and is very beneficial to the family. It isn't for everyone though and I'm not trying to advocate that. However, it is natural and has been the method used for humans since the dawn of man and is still the primary method used by most if not all mammals. Some children take to it very very well (like my son) and it saved many waking hours during the night.
My wife and I don't really drink and neither of us smoke or do any drugs and neither of us were on prescription meds so we were safe in doing it. We made sure our blankets only covered our lower torso and that the sheet that come up to our necks was very very thin and easy moved by a swipe of an arm. It can take effort and some might hate it, but don't discount it on the fear of SIDS. Co-sleeping is known to have reduced instances of SIDS and the new data continually being pumped out is very much consistent with previous studies.
oicdn: I'm very sorry to read about your niece. I can't imagine what it would be like to lose a child, particularly one so young