I had that exact problem (not the atkins part) and Ambien got me out of that cycle. It can be anxiety, and it just gets worse the longer it continues ("here we go again...") If you decide to get Ambien, it is pretty expensive without a presc. card, and also quite addictive. But it did help me get out of that pattern, I know how you are feeling.
Tylenol PM's really screwed with my sleep, that is the last thing I would use.
Sleep for 2-3 hours, wake up with "hangover" for 2 hours, repeat cycle. Also they wouldn't kick in right away.
My brother and mom recommended Melatonin (herbal pill), but I have not tried it. Alot cheaper and no dr. visit.
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