Vanessa, all of your points were excellent ones!
To the OP, "norarose88"...you brought this puppy home at 5 weeks! That was your FIRST mistake! You have confused the dog by trying to indoor/outdoor train it. It is a DOG, not a CAT!!! The puppy should have been taught to go outside only. Sacrifices have to be made, and this dog deserves that YOU make them. This dog is trainable once you learn how. It will require devotion and consistency. It will mean that you must sacrifice your needs and wants, some sleep and some down time to adequately train this dog.
No puppy should be separated from its Mother prior to 8 weeks! Why did that happen?
Imagine telling your puppy it's ok to go indoors, but only "here" and "not here". Do you think your dog has the capacity to understand that? Of course not! You need to clean your carpets with an enzymatic cleaner to erase all traces of scent left behind, or you will NEVER succeed.
I am attaching the link to our "Housetraining 101" thread. READ IT IN ITS ENTIRETY!!!! You will have to start from scratch, and the best place is by throwing away those puppy pads. To rehome this dog because of YOUR FAILURES is unfair and if that is the route you take, you should never have another dog again as you aren't prepared to do the work. Sorry if that's harsh, but it makes me very sad indeed to think of this confused puppy.
One of our members has a lovely rescued Chi/JRT cross. He was "thrown away" because his owner felt he couldn't be housetrained by age 3. The previous owner went to such extreme measures that this dog was afraid to even drink! It only took about 2 weeks to train him, although he had the odd accident, each of which was a "mistake" on the part of his new Mum, which she acknowledged! He is now a perfectly trained dog, living a wonderful life with a loving Mum. Your dog deserves the same.
Here is the link:viewtopic.php?f=6&t=6565
After you read the ENTIRE thread, by all means, post your questions in here. It is the least you can do for this dog you claim to love so much.