Fly larvae and dogs

Question
We found lots of flies and fly larvae in our home, can this harm our dogs, they are indoor dogs, we live where it is hot so they are mainly indoors.
ALSO I have a question about training a dog that is 2 not to chew... he chewed a hole in the MIDDLE of the sheetrock in our bathroom... we have to keep him in a kennel when we are not home and he is inside so he won't chew, we gave him free roam and he chews EVERYTHING! What can we do to help this. And I have a little yorkie he will be 2 soon, he pees when he gets scared or excited, we aren't sure which, what can be done about this if anything? Both dogs are neutered.

Answer
I don't know of flies being a problem.  I think they will lay eggs in an open wound, but not attack intact skin.  

As for the chewing, stick with the kennel for another year or 2 at least.  It may be more habit than need, but our 13 year old retired dog guide is left on a tie down when alone.  Besides stopping chewing, etc. restricting activity slows body process allowing the dog to go longer without relieving itself.  

Most dogs have outgrown the wetting by 2 years, but you can reduce it by building the dog's confidence up.  Start with obedience training.  The key to most behavior problems is approaching things using the dog's natural instincts.  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. A good obedience class or book is about you being top dog, not about rewarding standard commands with a treat. Start at http://www.dogsbestfriend.com/  As you praise the dog for following your commands, it will build its confidence.  

Play tug of war with the dog and lose.  However at the end of the game, take the rope or toy and put it up, less the dog becomes confused about who is top dog.  Ropes from the pets' store quickly turn to hazardous shreds.   Ones I made  lasted much better.   Go to a hardware or home center that sells rope by the foot.  Buy 2' of 3/4" poly rope. Melt the ends, and tie  knots in it.   Get them as tight as possible, put it in a vise and pound it with a hammer.  Watch carefully, and be ready to discard when it comes apart.

Finally, make sure it has a den to live in.  If you are not using a crate, buy one.  The dog may be happier in its den than loose in the house.  It relaxes, it feels safe in its den.  It rests, the body slows down reducing the need for water and relieving its self.  Dogs that have been crated all along do very well.  Many of them will rest in their crates even when the door is open.  I think the plastic ones give the dog more of a safe, enclosed den feeling.  Metal ones can be put in a corner or covered with something the dog can't pull in and chew.  Select a crate just big enough for the full grown dog to stretch out in.

A dog that has not been crated since it was little, may take some work.
Start out just putting its toys and treats in the crate.  Praise it for going
in.  Feed it in the crate.  This is also an easy way to maintain order at
feeding time for more than one dog.