I think you just have to persist with PUPD. YOu only pick up if she is hysterical, then put her straight back down, so most of the time you spend trying to settle her in bed. The trouble with settling her in your arms, is that when she goes into a lighter sleep or realises she is no longer in your arms, she will just wake up again, angry that you put her down. Does that make sense? So although settling in your arms might feel quicker, it may actually be prolonging the process (as you found). YOu need her to calm down in her cot, so that she can replicate it for herself, and so she gets used to the feeling of calming down and going to sleep in her cot.
((((hugs)))) for the rough night.