I would definately stick with the Breast feeding, formula will NOT make it any better. Going dairy free seems like it would be really hard, but once you do it, it's ok. I have been dairy free for a year now and honestly I don't miss it so much.
You should go over to the food allergy board and check out the MSPI info and feel free to pm me or any of us allergy mom's with questions (in addition to asking here)
Be sure to watch for "hidden" dairy in many foods like lunch meat, hot dogs. You need to avoid all dairy, not just milk. look for whey, some caseinates, etc...I belive all that really good info is in the Allergy board.
I wish you good luck! Like I said, there are alot of us dairy free breast feeders and we will support you! You can do it!