Hi -
Here's how we handled the sleeping... with this advice, take it or leave it

By the way, for those who do "controlled cyring" or "self-soothing" I think that is perfectly fine if that is your choice. Everyone does what is best for themselves and their family and I totally support that method, even though it is completely opposite of my approach.
We always held the baby until he was in a deep sleep (would take 25-30 minutes) then would lay him down wherever to sleep. During the day, it was on the floor, in his bouncy chair, or in his basinette. At night, he was in his basinette next to us for the first 6 weeks. However, I moved him to his crib at 6 weeks because he was a very noisy sleeper. Any little noise and I would wake up. Once I moved him, I got some better sleep.
As for "attending" to him day or night, if he woke up either crying or even fussing a little, we picked him up. At that point we would feed or rock him back to sleep and wait the 25-30 minutes for deep sleep to over take him. Then we would lay him back down. Granted, he often took 2-3 hour naps in our arms too when we just wanted some snuggle time. When we did lay him down, he would wake up often... sometimes after just a few minutes and we'd go back to the holding/rocking to get him back to sleep. There were times when laying him down would wake him up no matter what, and during those time, we just held him/slept with him. There were many early mornings that both DH and I would lay in bed propped up with our baby asleep on our chest. Some would argue that this isn't safe, but we were comfortable with it.
Around 3.5 months when he started to be more predictable, we'd lay him down in his crib awake at nap time and most times he would drift off to sleep on his own. If he cried, then we'd rock/soothe him to sleep. Now at 11 months, he goes down for naps and bedtime wide awake, and falls asleep on his own. We also have a fisher price aquarium in his crib that can play music, has lights and bubbles, which has helped to distract him from the idea of mommy and daddy leaving him.
This routine is what worked for us. For me, I think it helped to build a trusting relationship with our baby. He didn't fight naptime/bedtime because he knew we'd be there if he needed us. I don't think picking him up or rocking him spoiled him or made him unable to "self soothe." He was sleeping through the night by 5 months for 11 hours straight (by age 2.5 months he only got up once for a feed). Even now, when he once in awhile wakes up in the middle of the night... I just go in pick him up and give him a hug and snuggle for a minute and he relaxes and I can lay him back down again. He must like his crib a lot, because when he wakes in the morning, he'll lay there for a good 45 minutes talking to himself before he gets whiney and wants us to come get him. I don't know if we just got lucky, or if it was our "method" that got us a really good sleeper after a few months. Looking back, I don't regret a minute of the time I spent just holding and cuddling and rocking with him. In fact, I wish I did it more as now he is so "independent" that he only likes snuggling and rocking at night just before bedtime. The rest of the day he is too busy playing to just sit snuggled up with me.
At 7 weeks old, your little one is nowhere near capable of self-soothing. She loves her mommy and wants to be with you! Don't worry about sleeping with her, or always holding her... there will be plenty of time later to change the routine as she gets older and is more trusting of your bond and her environment. As for getting stuff done around the house, I just tried to remind myself that the baby doesn't care about laundry being done, the dishes washed, or if the house is picked up. But the baby will care if mommy is tired and cranky... so try to sleep when she does and forget everything else except keeping yourselves rested and fed. Also, you may want to try a sling or baby carrier, as she may fall asleep in that while you are still able to go about doing stuff. Hendricks often fell asleep in the baby bjorn while I was vacuuming or doing laundry.
--Julie