I remember when I was potty training Charlie... Inside, he'd go on the puppy pad fine, but outside I think there was just too much other stuff going on for him to concentrate. There's a couple of options that worked for me when i was having problems. Try taking the USED newspaper outside. I know, eew eew eew! But she'll start learning to associate the smell with the OUTSIDE instead of the INSIDE! And as already mentioned, when she goes, lots and lots of praise and/or a treat. If she poops in the house, pick it up and take it outside. Same concept as with the paper. There are also sprays you can pick up at PetsMart or Petco that are designed to attract pups to the spot you want them to go in the yard. They actually work pretty well. Also, I don't know how much you're home during the day, but don't give her the option of going inside. To start, take her outside every 10 mins or so. Especially after she eats. Eventually she should start getting the hint, shepherds are good n smart!

Just remember to always use positive reinforcement! Never holler at her, smack her or rub her nose in it. In fact, the latter has been found tosimply reinforce the behaviour. If you catch her in the act, a stern "NO!" then pick her and the poop or the paper up and take everything outside. She'll begin to realise that if she goes inside, mom's not happy. Outside, she gets lots of love and treats. Pups love to please.

Sorry it's sort of a long reply, but i figure I'd just throw out everything I know on the subject. hehe Good luck and let us know how it goes!