You might have other behavior issues at work here. When dogs pee all over the house, it's also a mental thing: I own this house and I must mark my territory! Once that smell gets in the carpet, it's really difficult to get a dog used to the idea that he's GOT to go outside.
First, either rent a good steam cleaner or have your carpets thoroughly cleaned. That will allow you both to start fresh.
Next. Something tells me that your dog is ruling the house, and you may not even be aware of it. Do you treat him like a dog, or do you treat him like a human baby because he's such a tiny, cute, helpless-looking little guy? Do you carry him around all the time, or allow him to move around under his own steam? How does he behave when visitors come to the home? No big deal, or does he bark his head off at them? How do you handle that behavior? A little more information on that part will help you get more detailed answers. Hope to hear back from you!
I always found that when your dog wakes up from a sleep you have to put him outside straight away,
take him for regular walks, if he does do it inside just tell him thats naughty in a louder voice than you usually speak to him in and put outside again, he will learn if you do that.