lab/husky mix and housebreaking

Question
somehow, i have managed to get my dog trained in reverse!  she will pee in the living room and if i catch her, i yell "no" and take her outside.  once she is outside, she will look like she is going to finish, but she'll get distracted, and i can stay out with her for hours, and when she goes in...she goes to the living room and starts to squat again, so out we go again till finally, after several trips, she will go outside.  i praise her everytime she goes outside, and scold her everytime she goes on my rug.  but she just doesn't get it!  i know she is smart, cuz when she couldn't get her ball through the fence for the neighbor to play, she took it to the gate and rolled it under the corner.  we just finished an 8 week puppy training class, and she still pees in the house, won't come when she is called, and will go after people and cars.  when we go for a walk, i have her sit and wait till she doesn't go after the people,dogs, or cars, then say "ok" and walk on.  any help would be greatly appreciated.  otherwise, with people she has gotten to know, she is very affectionate, although sometimes a bit playful.

Answer
Walking her around when you take her out should help.  Exercise stimulates elimination.  they can only walk and hold it so long.  Using a command helps too.  

A dog needs to go out the first thing in the morning, after eating, drinking, and sleeping. If it quits playing, and starts running around sniffing, it is looking for a place to go. Take it out quickly.  If she is using the same spot, be ready to take her out if she gets near it.  

"Come" needs to be taught as part of proper pack status and obedience. The dogs see all the people and dogs in the household as a pack with each having their own rank in the pack and a top dog. Life is much easier if the 2 legged pack members outrank the 4 legged ones. You can learn to play the role of top dog by reading some books or going to a good obedience class. Start at http://www.dogsbestfriend.com/

If you dog is at least 4 - 5 months old, start with a good 6' leather leash and a sturdy slip collar, the metal chain ones with the rings on each end. You want the shortest one that will go on and off easily. If you walk with the dog on the left, pull the chain through one loop forming a "P". Facing it, slip it over its head. The free end should come over the neck to the leash, and the other end should drop slack when there is no pull on the leash. Before 4 months use a conventional flat collar to protect the tender young neck.

With the dog at the end of the leash, call its name and "Come" in a firm voice. If it comes, praise it lavishly and pet it. If it doesn't come, repeat the command and give the leash a light snap. Keep it up with firmer leash snaps until the dog does come. Do not forget the praise. Then switch to a longer leash or rope, about 25'. When it comes well on the longer leash, you should be able to go to off leash in a fenced area, etc. Once the dog is doing well, introduce come, treat. This is for emergencies only when the dog has gotten loose accidentally. Use it routinely and you will have nothing to fall back on when your dog is headed for a busy street. "Name, come treat!" is little different from the regular "Name, come!", except the dog gets a great treat when it comes. We are talking a hot dog, cheese, etc. much better than any treat you use routinely.

Relying on come to control most dogs loose outside is risky, and I do not recommend it. Dogs are individuals. Some can be trained to come when you have no way to enforce it, but some will never be completely reliable even for the most experienced trainers.

Consider fencing the yard, either a conventional fence or the electronic ones. A tether is fine for short relief breaks with exercise coming from long walks on leash or in controlled areas like a dog park. Just letting a dog run loose in a residential area is not acceptable.