Early on when we first got our dog, we were having trouble with potty training. Then, our vet told us that we were giving her too much freedom, and she should be in her kennel just as you described. Well, I also had a hard time with it, and I found another option when reading a book on training. It suggested the leash method. It said that we should keep her on her leash and tied to us when she was out. I worked well, although once my brother in-law asked, "Is that dog ever going to get off that leash?" She finally seemed to get what we wanted her to do, and she has been off the leash for five of her almost six years. We do keep her in the kennel during the day when we go to work, and lately, she goes in herself when I am ready to leave. One think I have always needed to remember is that I read somewhere that dogs are "den" animals, like wolves. The kennel is their den, and they feel safe there. I think that Yorkies have that way of always making us feel guilty, especially if we are not catering to their every whim. Hang in there.