We had the same problem with the childcare rules/state laws. I just took him out (killed me to do so since he loved it) but he just was not ready and part of it for us was that he is stubborn and will do it on his own time. 3 months after his 3rd birthday he finally started going reguarly pee in the toilet but it was all thanx to hubby. Our son would watch hubby go and they would end up peeing together..LMAO! So daddy taught him. Took another year for him to go #2 in the potty. Now just trying to figure out how to deal with the night time wetting since he doesnt wake up and that either means setting an alarm to wake ME up (hubby is in the military so doesnt work for him to do it) and I miss out on a ton of sleep..still working on other options..LoL
We also bought the potty dvd for boys and this wierd potty book that has a button that makes the flushing sound..oh and Bear in the Big Blue House potty dvd. We watched those two dvds over and over and over (did i meantion over) again.
We did try it the childcare way which was put him on the toilet and make him sit there once every hour. That did NOT work at all, he would scream the whole time and he stopped even going into the bathroom. So we stopped that.
I do say that pullups are just as bad as diapers because you throw them out and that means your attitude is a bit different towards accidents..if that makes any sense. My son had them and when he was in underware he would BEG to have a pullup because well they are just like diapers. lol
We did also try Dr. Phils way but that did not work either (buying the peeing doll, letting him pick out his own underware, etc) He was scared to death of the doll at first then wouldnt let up on drowning the thing..lol..and the character underware didnt work since most of the characters he has no clue who they are and so the phone call to favorite character once he went didnt make him want to go anymore than anything else cause he didnt really have a favorite and never used the phone before..
Anyhow good luck!