hi Bec,
i think you could go either way... definitely treat 5am like a night waking as you have been. as far as when to get up next... when do you want to get up? i always liked setting my babies' clocks to 8am to start the day. but if 7am works better for you, by all means go and do that instead.
feeding wise, yes, the 5am feed will get less & less, but you will have to add more to the other feeds to make up for it, as he will still need the calories to get through the day.
regarding the shh/pat, have you seen this post? it explains a lot of the details:
http://www.babywhisperer.com/forum/pat-shush-for-babies-under-3-months-old-vt26672.htmlmainly, if he is calm, go and put him back in the crib and continue shh-ing.
the big thing is to stay consistent. my ds was very stubborn with the 45-min naps - it took 6 weeks to get him straightened out, but he's a much better sleeper now!
HTH