Finger Nails on a Chalk Board

That is what whining is like to my brain. Caden has embraced this new form of communication and uses it on a regular basis. It literally drains every ounce of mental energy I have. I've been reading many different books and online forums as to what to do about it and I'm seriously at a loss....some people say completely ignore it, some say to look at your child every time he/she whines and say, "Sounds like you need a hug" and embrace them...some say get dolls and roll play a whiny toddler and an exhausted mommy...seriously?
I've tried ignoring...i try saying, 'Stop whining and use your words' but I don't think he even gets what whining is or that he's doing it.
My problem is not knowing exactly what Caden understands and what he doesn't. When I ignore his whining, he resorts to screaming and screaming lands his butt in time out which leads to hyper-ventilation and severe bouts of crying all the while moaning "MAMA!" and rocking back and forth like a mental patient. I could leave him there until he finishes but he would be there all day...literally...until he literally fell asleep screaming...and I don't think he understands 'Time out doesn't start till you're done screaming.'
I think this tactic is great for older kids or kids with the verbal capability of understanding and communicating back, but Caden is a fine line between baby and kid...you'd never put a baby in time out for crying, but you certainly have to put a kid in time out for acting out...who knows...
All i know is that the terrible 2's don't last forever, otherwise people would never have more than one kid...unless their toddler induced post-traumatic stress disorder blocks this period of time from their memory...
On a lighter note, Caden is grasping the concept of potty and pee-pee. He's peed in the potty many times now and even when he doesn't make it, he usually tells me when he just pee-peed in his diaper. I'm impressed with his interest and understanding being such a young boy.
Guess I need to start researching potty training....do I get a masters degree when I'm finished with this parenting thing? Because I've never studied so much in my life!