My wife and I just purchased a wonderful 7 week old Yorkie and she is the cutest thing ever. We are in the process of pad training Zoey which is a lot of fun

We have had her for 2 days now and have been contemplating between crate training and locking her up in the downstairs bathroom.
Question #1: We have a 2 story home and there is no way she can make it up the stairs right now. Is it possible to train her for both downstairs and upstairs pee pads?
Question #2: We are mainly training her to eliminate in the downstairs bathroom. Telling her "No" when we see her going on the carpet and then proceeding to pick her up and sit her on the pad to finish whatever is left over if any. Is this the right approach?
Question #3: That bathroom we are training her for we plan on locking up with a gate and keeping her in there with a pee pad, food/water, and her bed/toys during work and sleep. We are generally gone for 8+ hours during a work day and therefore have concluded that crate training might not be the best. Since she is only 7 weeks old is it too early to keep her locked up in the bathroom at night? She constantly whines when we leave her and is okay when we put her in our room on the floor. The problem with the room is that we cant control where she eliminates and we wake in the morning to some wonderful surprises!
Please help! We appreciate everyones input!
Thanks,
Phillip!