I need help with crate training!!! need experienced answere!?

I adopted a two year old toy poodle ( about 5 pounds) I've been trying to crate train her for almost two months. She is in a very small wire kennel for her size. ( she only has enough room to sit or lay down.) But she pees and poops where she lays. I take her potty with my other dog (also 5 pounds) four times a day. I feel so bad for.her because I keep her in there most of the time, if I don't she poops and pees on the sofa! I just don't understand what could be going wrong. Dogs aren't supposed to like deficating where they lay! On the rare occasion my other dog has an accident in her crate she would be crammed in the corner as if it would burn her if she touched it. This dog dances in it! Yuck I tried taking them potty together 5 times a day and after she's peed outside she'll potty in it two hours later. I don't want to take her back to.the shelter cause I know she'll be putt down. I don't know what to do ....