I used the same technique my mother used and it has worked great! My daughter did the exact same thing at 18mos. Then we tried again at 2. We kept her in our back sun room (no carpet)with all of the amenities of the play room (toys, books, dvd's etc.) with the addition of a porta-potty. We kept her in a shirt/dress and nothing else. We played all day and when the peepee was coming, we sat her down and said "peepee on the potty like a big girl" then did a huge celebration dance with pnut m&m's as a reward. After 1 full day of this the next day was better and we progressed to big potty, poop etc. It's been barely a month and we no longer have accidents during the day. We're working on night time and getting better. We still are big into the praise thing EVERY time and only give a snack/treat if she asks - which is fine because she feels like she's telling us something to do. As for the panties, I'm with everyone else, let her pick them out at the store and everyday after. (luckily they're not too expensive because she'll probably want one of each variety!) Children will go when they're ready but a lot of times they'll go when YOU are ready for them to - with the right kind of attitude, praise and consistency. Be consistent. Good luck and let us know what happens! (sorry to be so lengthy!)