aggression in OES

Question
I have 2 males OES, Mak will be 10 years old on 8/21/08, is neutered (since 18 months after discovering pre-disposition to hip dyspl.) he has severe cataracts in both eyes, but functions well and gets around without incident.  Wally will be 3 years old on 11/22/08, is unaltered and was brought home as a pup at 10 weeks old.  Mak was initially standoffish, but has grown to love and accept Wally into the family.  Mak has never been what you would call a "lovely" dog, he enjoys new people and is excited over them, but rarely cuddles with me or wants to be in constant human contact.  Wally on the other hand has always been very affectionate, cuddly and would be very happy to never leave contact with me for any reason.  
Approximately 3 weeks ago, I was forced to move into a smaller apartment than either dog was used to (1600 sq ft house with nice yard to 900 sq ft apt with only a 4x8 patio). Both dogs were doggie door trained. I have a doggie door now to the patio.  After 3 weeks of constant issues with both dogs deciding to use the carpet instead of the patio as their bathroom, I confined them to a small area just inside the patio door while I was away for work.  Mind you I walk them morning and night, which sadly, is more than I did in the house.  On the 2nd day with them both together, Wally attacked Mak... top of his head, side of his neck, his left eye... I came home to blood everywhere.  I have separated them, but now am faced with the ultimate question... what now?  I cannot keep them separate all the time.  suggestions???? Have Wally neutered? get rid of one of them (please god no)???

Answer
Neuter the dog.  If your dog is not showing in the breed ring, he should have been neutered quite a while ago anyway.  Frequently, that will reduce aggression in males.  It does take some time for the testosterone to diminish, so you may want to separate them for a few weeks.
The house training 101 can be accomplished by crating each dog separately, as can the separation.  If the dogs are not already crate trained, you have some work to do.  I think your mistake was that you contained both dogs in too small a space at a time when they might be reasserting just who is the top dog in the new digs.  It is never a good idea to confine two dogs in a small space together, even ones that really get along well otherwise.  
One possibility is that your young dog has finally decided that the old dog is to be unseated.  What I dislike is that there were wounds, and not simply a ritualistic fight, but the containment issue may have some bearing, and you really don't know exactly what happened.