4 year old Pomeranian and kennel training

Question
I adopted a Pomeranian that is about 4 years old.  She is very sweet. She does exibit some separation anxiety issues and follows us around the house a lot, especially if it appears one of us or all of us may be leaving her home alone.  She spent a lot of time alone at her previous home.

The previous owner didn't use a crate. She used puppy pads for her.  I have been told by my friends that it is essential to crate train her if I don't want her going in the house while I'm away.

However, whenever I leave, if only just for an hour or two, she pees in her kennel.  I know she is able to hold it longer than that, as she never pees in the house when we are home; however once in awhile will poop if we're not paying attention.  She also is prone to peeing a LOT if I take her on walks; marking like I would expect a boy dog to do.

She is not spayed but will be the week after Christmas.  

So, should I continue with leaving her in her kennel when we are on errands and when I'm out of the house for work 2x a week, or should I block off an area like the kitchen and see if that is better?  I also have 3 cats which she tends to fuss at when they get too close, but I'm more worried about her than the cats as she's smaller than they are!

Thanks,
Chris

Answer
Patricia McConnell has two great little books that I think you may want to get...the first is "Way to Go" and the second is "I'll Be Home Soon". These are great little guides for house training, and for helping your dog overcome any tendency toward separation anxiety, which is common in dogs that have lost a home.  Instead of crating, if she soils the crate, you could elect to tether her to your waist with a "buddy leash" - that eliminates the use of the crate (so she doesn't practice eliminating inside it - and allows you the use of your hands, plus you can take her right outside if you think she looks like she needs to go.  I'm concerned that she may have learned to be fearful of peeing in front of people, and that's why she can hold it so long in the house when you are there, so remember not to scold her for accidents.  DO praise and reward her for going outside and associate a word like "hurry up" for the action of eliminating.  If your crate is too big, she may be able to pee and then get away from it.  A crate used for house training should only be large enough for the dog to stand, turn around and lie down.  Some dogs, especially ones that originally came from puppy mills or pet stores, or were taken from their mothers too soon, do learn to soil their beds...hopefully these suggestions and the book can help (it's very inexpensive).