[gemy]

I will chime in as well on the side that it is not cruel to confine the puppy when the other dog is out n about. Dogs do learn by watching as well as doing - just like we humans!

You can use your laundry room for both dogs when you go out and about or when you want to clean house etc.

And as another poster mentioned it is good to walk the pup separately especially in the beginning so that you build her confidence without the older dog around. Then sometimes together so they bond as a pack and also to learn to walk together nicely.
dogs love to work and do obedience. My three all do. When I work with one outside the other two are by the window whining to go out. Great fun.