I def agree with everyone else...this is a puppy you are talking about. My little girl is now 11 weeks, I have been doing clicker training since she was 8 weeks and she really responds well to it with me, DH doesn't do much of it as I am the main trainer as I am with her 85% of the time, once she gets things down better he will jump in and do more training - commands with her. She is just starting to get better with me and biting, but she has a problem with DH. I find when she is really wound up she wants to bite more and it is harder - I then get her involved in a game, give her a chew toy or take her outside and get her running around which tires her out and she then eases up on her biting. When puppy is biting lots, tell them to yell ouch, get up and walk away. The pup will soon learn that type of behaviour gets no attention.
"She held him to her chest and held his head against her saying that was a move of domination. Of course the dog didn't like this and was squirming. She then took him and flipped him on his back like a baby and held his head again. He went nuts. He started barking and growling. She told him NO and it just made him more mad. He bit and scratched at her until she finally just put him down." - Most pups don't like this, especially from strangers - who the heck wants to be confined by someone they don't know?? My girl did the same thing with DH when he put her on her back - I don't have a problem with this, she loves to be on her back with me.
As for the peeing, they need to be totally consistent until the pups starts to get it. After naps & eating straight outside - treats and LOTS of praise. I started by putting my pup outside every 15 minutes until she went. If she went I would wait about 20 - 30 minutes and then go back out. At 11 weeks, she is now good for about an hour - she also goes to the door 90% of the time. Tell them to watch for signs, sniffing and circling - when they see this take puppy out side. When she does pee in the house as they are watching, say NO firmly, carry pup outside and tell him to go. If they miss it, clean it up with vinegar/water/b. soda and make sure puppy does not see it. Puppy will come around, but they NEED to be consistent and totally on top of puppy at all times.
IMO both DW & DH need to get some training, read some books about puppyhood / behaviors and patients. Start with "Culture Clash" by Jean Donaldson and also the "Dog Listener" by Jan Fennel. Once again, this is a puppy - they DON"T know any better - they need training and patience.
I also believe, the vet they have...SUCKS!! Good luck and please tell them not to give up on this puppy, it gets better - really it does

Keep us posted.