Joey's the same way, our balcony overlooks a park and he loves to bark at people and dogs who walk by the house. Ralphie who came to live with us a year ago, was a pretty quiet dog when he came here, but now he loves to sit on the balcony even more than Joey. I really think that's what these little guys were originally bred for, they may not be able to attack, but they can alert people to strangers, and I think they think they are doing a great job. I really think this thread can help you. The idea is to teach them that it's okay to bark, but sometimes you can tell them to stop. I now reward them with "good quiet" when I want them to stop barking. It really seems to be working and this way, both of us our happy, they can bark and I can say enough is enough! Then sometimes we just close the shades and curtains and this stops all barking unless they hear something.
http://www.yorkietalk.com/forums/gen...h-barking.html