Erin,
We weaned from the swaddle about 3 weeks ago. I said "we" mostly because Anna Krisztina hated to be swaddled, but it was a great help for me to settle her down, so it turned out that I needed the swaddle more than she did.
We did the "cold turkey" approach. One day I just didn't swaddle her and at the beginning, she was pretty surprised that she didn't have an excuse to moan about (HA! :twisted: ), but still when she was falling asleep, she would rub her face with one hand (and get herself started all over again) or she would wail her arms (and get herself started!), so what I did was that I put a big pillow on top of her (waist down) so the weight would help her settle down and not jump too much and I would have to gently hold her mischevious hands until I could feel that she was relaxed enough and she wouldn't jump anymore. I also tried to put her little arms under her blanket with not too much success.
About a week after, she started to suck her right fist and the holding hand thing was rather a distraction for her (she would just do anything in order not to be held) so I just stopped doing it.
I personally was very worried about the "shifting gears" in the middle of the night, because I had seen her wailing her arms a lot and I was afraid that she would wake up, but again, babies are surprising little creatures and it only happened a few times...
Just remember that babies are different, and you shouldn't worry if yours still needs the swaddling. The BW book says that some babies need it until about 7 - 8 months.
Good luck!