To HoosierMommy,
So she is capable of staying dry! Well I still think you should try it. Find a potty book an explain it like she has never heard it before, and reintroduce the whole thing. Tell her your done with diapers and hold your ground. Set up her environment so it is way more convienient to go in the potty. It sounds like she knows what to do. When we re-explained it to DD she said I already know.

We would take DD out on purpose to my parents house who were in on the plan. I would give her opportunities to go and if she had an accident we had to go home and get new clothes, no more playing so sad. We lived 30 min away so we could not go back that day(a natural consequence)You can't fight with nature.

DD originally was potty trained at 16months which was initiated by her (wearing underware no accidents). Then around 2 after spending the week with Grandma who thought she was to young to be trained and I must be pressuring her, DD decided it was more convienent to go in her pants and would tell me,"Im busy and grandma says sometimes 2 year olds go in thier pants." We reintroduced everything just in case and after a few unexpected trips home she was all set.

On the other hand I have a 20m old DS who is not ready for the potty quite yet. And we really do love Grandma.