Intoduction and Q about Housetraining

First and foremost, I would like to introduce myself and my new pup, Lucy!
Picasa Web Albums - Lisa - Lucy#

My question is a basic one - Lucy came to me sort of not really potty trained (she is 3 y/o, and i've had her aboutt two months). I take her for three walks a day (morning, when i get home from work, and before i go to bed) - but she is only about 50/50 on wether or not she actually potty's while on a walk, and even if she does go to the bathroom on the walks, she STILL finds a spot to pee or poop in the apartment! I also keep her in the kitchen while i'm at work (baby gate), and she is also about 50/50 on wether or not she goes in there. I tried crating her during the day, but she FREAKED out when i did that (she is normally a super calm sweet sweet dog, and as soon as i crated her she got nuerotic, nervously panting, etc.).

What can i do to curb this behavior?

she has plenty of opportunity to potty, and when she does go outside i praise her. She tends to go in the same area each time, so i was considering putting down newspaper so at least she wouldn't destroy the carpet, but i'm not sure if by doing that it would tell her pooping in the house was "ok" (which it's not, but i'm having trouble figuring out what i need to do to modify that behavior). She is my first pup on my own, so this is new for me (i'm sure you've had this q a million times before).