Of course this is our opinion, but I think you are sending mixed signals: outside or inside? And most puppies, if the crate is just large enough for them to lay down, stand up and turn around and then lay down again, will not potty inside that space. Dogs by their nature do not want to sleep in their own waste.
So, what I have done in the past, is give them a crate "just small enough" to keep them from pottying in the crate. As soon as you open the door to the crate, you must take her outside immediately, because she will go for you if she has been crated and not gone inside the crate. When she does go outside, you have to be a bit silly, and make a BIG DEAL about it. "YEAH!!!GOOD HURRY UP, GOOD GIRL, YOU ARE SUCH A GOOD GIRL" Clap your hands etc... She may be a little confused at the moment, so it could take you a little longer.
Then while you are at home with her and she is out of the crate, I would take her out every 30 minutes. Go to the same place in the yard every time, use the exact same command every time, whatever you decide, we use the command "hurry up" because it will make you feel better when it is pouring down rain and the pupper doesn't get offended because the words are just sounds to her that mean.........pee!!
Also, when you are outside to do her business, I do not do anything else with the pup. I keep my posture casual and loose. I do not allow playing with me and when they start to play with something in the yard, I repeat, "hurry up."
Puppies are easily distracted and easily confused. Just keep picturing yourself in a foreign country where you don't know the language and trying to learn a new job and you soooooo badly want to please your boss.
Also two other things:
1) Puppies usually aren't fully potty trained until about 6 months
2) Overnight digestion slows down, so an 8 hour stretch is not as hard as it seems.
Good Luck! The forum will have a ton of great ideas for you. I always say with time, patience and consistancy, you can train any dog to do anything, and shelties are very intelligent so she will catch on. I promise.