Our yorkie was in a baby playpen when he was really tiny, then we graduated him to a larger play area. It consisted of his bed, potty pad, and play area. We gradually made the area larger and eventually took the "fence" away. Now he roams freely in the house and uses potty pads. He does however still mark here and there when we are gone. I think he gets mad at us for leaving!!
He has slept with us at night since he was about 12 weeks old. He has never had an accident in our bed. He is now 2 1/2. I am getting ready to train a new puppy too. He is only 3 weeks old right now, so his mommy is taking care of all that!! But, I dread it! I hope he is as easy to train as Bevo was!