
I agree Lindsay, I used to be quite confrontational in my training of my Doberman when he was younger - and it did no good at all. What it did do was remove his trust in me, creating a more challenging dog that preferred to ignore me, a very independant animal.
Now I am very calm, quietly spoken with him and my other dog, and it has done wonders - he responds much, much better, and his agility has improved 100% - he even chooses me over horse poo. I don't try to "dominate" him either - I for one certainly do not believe that dogs are aching to take us over. I share my food with him, he sleeps on the couch (and on me half the time!), I don't eat first - and he is a wonderful dog. All it took was me being calm and patient.
Maynerdsowner, I would try a calm approach and see how it goes - it may take a while to take effect, but it will help. Be consistent of course, and very, very patient - when you say punishment, how have you been punishing him? Any physical (or shouting) punishment will likely have the opposite effect to what you want, making the dog do nothing you want - if I so much as raise my voice to my other dog, she will freeze, and respons to absolutely nothing I say. She is the poster dog for anti-punishment!! Keep at it with the housetraining - personally I would take pup into the garden by himself, so he can't get distracted by the other dog playing. I had to do this with a chi pup not so long ago (my sister's), as he would just play when my dogs were out - but he toileted fairly quickly by himself. I wouldn't put a time limit on it either for now - maybe later, but at the moment I would wait till he goes then praise a lot, however long it takes - within reason, of course!! JMO :)