I hope that the dog has had a vet exam to rule out any medical reasons for this.
If it's nothing medical, then you will have to revert to basic potty training. IMO puppy pads or paper training doesn't work - it teaches them that it's OK to potty in the house. While I agree you should never, ever rub the dogs nose in any mess they make - if you catch your dog in the act, give a firm "NO" and take the dog outside immediately. If you punish your dog for making a mess, they don't realize that it's the WHERE they went that you are mad it. They'll think that it's the waste itself and will start to hide to go potty so that their human doesn't see it.
Also, you need to clean each and every spot in the house with an enzyme cleaner like Nature's Miracle. If the smell is still there, it will encourage the dog to continue to use those spots.
For the toys - she may not know what toys are for, or it could be that she's been punished for touching the kids toys and has learned to associate toys with bad things.
Livin in a Newfie Drool Zone