Amy, what kind of puppy is Gracie? I saw her picture but it's hard to tell...? Will she be a large dog?
When I first brought Duncan home, he was already 45 lbs and six months old so obviously the training for him and for a little puppy is quite different! But when I had him in my room at night, we had no accidents! My room was fairly small so with the 2 of us in there, it was full! I don't know if that had anything to do with it but he never had a problem and would wake me up if he had to go. I also puppy-proofed the room though since I'm paranoid! Everything but the alarm clock was unplugged, everything off the floor unless I didn't care if it got destroyed! Why don't you try it, having Gracie in the room with you? You will be happier and Gracie probably will be too!