Potty training and nervous sheltie

Question
My sister gave me my sheltie three months ago.  The vet said he was at least one year old.
When we got him, he was not really potty trained and was terrified of new people.  After three months, he still acts the same!
I have tried taking him outside every hour or two, but he still will not go outside.  I will stand outside for forty minutes and five minutes after I bring him inside, he will poop on the floor.  I am gone in the mornings, and when I come back he still does not go.  what can  I do?
Also, he is afraid of everything!  When we do go outside, he is too busy pacing with his tail between his legs and becoming skittish at every little sound (people, cars, leaves rustling).  What will help him to not be so afraid of everything?

Answer
Stacy,

Oh boy.  What can I say?  I'll say that if you can stand to stand outside all day long do it.  Sit in the grass and love on this dog.  Massage his belly.  Stay outside until he does his business.  If you are outside an hour and it doesn't work bring him inside and shut the door and just casually watch him.  As soon as he hunches his back grab him and run outside.

If you prefer, you can immediately crate him when you return from outside, wait 10 minutes and take him back out again.

When the poop hits outside show him and praise him say "good boy"!!!!  

Look, he KNOWS you are frustrated.  He knows he isn't doing right but no one has ever taught him correctly what to do. He is scared of the whole world because it has given him reason to be.  When you tense up outside he isn't going to go potty because he thinks pottying is bad.  He hasn't associated it with WHERE is bad, just that DOING IT IS BAD.  Does that make sense?  

If you feel like this is beyond your ability to help then open up a new tab on your web browser.  Go to google and type in "sheltie rescue" and add your home town and state.  Start talking to people in your area and find a home for him.  

If you want to take it to a different level, consult your vet about anxiety calming medications and see if a short run will help him get through this adjustment period.  It's cheaper than replacing the carpet and not being totally freaked out by leaves and the wind might help him go potty outside.

Dog rescue is equally as frustrating as it can be rewarding.  No other animal will love you so much once you get them healed from the trauma as a rescued dog.  Sometimes the effort is more than people can give and I totally understand that.  Let me know if I can help on anything else.

Dave