Sunshine's hair has always been kept long. I didn't cut it for the babies. I DID shave her tummy a little to clean it up some. The babies never had a problem with the hair. Also don't forget the heating pad. I read up on everything I could find before Sunshine had her litter and I think the most important thing I found mentioned over aND OVER IS TO keep them warm. pUPPIES WILL DIE VERY QUICKLY IF NOT KEPT WARM. i ACTUALLY HUNG A THERMOMETER IN THE WHELPING CAGE TO MOnitor it (sorry about the caps). What was recommended to me by a breeder was
1st week: 85 degrees
2cnd week 80 degrees
3rd week 75-80
4week and over- 70-75
Here is a great article all about whelping and puppy care
http://www.k9web.com/dog-faqs/medical/whelping.html
And this site has a wealth of information on yorkie whelping including pictures of the birth process
http://www.dogbreedinfo.com/whelpingpictures.htm
Good luck!
Sonya