From what you describe, I would tend to agree (from my own experience... I'm not a pro) that you have pinched nerves. My recommendation would be to see a pain management specialist and/or a neurologist. In my situation, I have a herniated disk, a couple of bulging disks, arthritis, and facet joint problems. All of these contributed to sensations much like you described. I found I either had pins and needles, or felt like there was a fire burning in my back.
There are various treatments that may be beneficial to you...
Some of these require a pain management specialist, and may require injections. But before you panic about going that route, ask your doctor about lidoderm patches. They can be surprisingly effective in helping discomfort of this sort. If it's diagnosed as neuropathy (nerves firing continuous "false" pain signals to your brain), there are effective medications to help this. New ones include cymbalta, and lyrica. I am on lyrica, and posted a brief write-up on it. I have found it has helped me tremendously. The lidoderm patches are also very helpful in many cases, and are quite harmless overall.