We had a very similar situation with Abby when we first got her (she did not care one bit to pee in her crate and then lay in it)...so I hope I can be of some help to you.
Unfortunately, you are probably going to need to take her out more often than every 2 hours. We were lucky in that my husband worked from home for the first few months after we got Abby and he took her out VERY often. We kept Abby on a schedule, so even if she was asleep, he would wake her up and take her out. OR, if she woke up from a nap and it wasn't actually time to go out - he would take her anyway. We did the same through the evenings, too.
Don't get me wrong - we still had plenty of accidents through much trial and error, but I can honestly say that Abby is almost completely potty-trained now! She is 7 mos old and hasn't peed in her crate for quite awhile now...AND that's including the fact that my husband doesn't work from home anymore, so she's only being taken out in the morning, then at lunch, then when one of us gets home after work. (We do, of course, take her out several times during the evening b/c she's out of her crate and active, so she needs to go more often.)
I would be more than happy to post the schedule we used if you'd like to try it. Just let me know...
And, please do keep us updated - I KNOW how you feel, we were SO discouraged during those first few months. So I will try my best to help and encourage you...