The Potty Training Saga...

We have been trying the potty training thing for months now, but recently... about a month now, decided that we needed to get serious about this potty training thing. This is about the time I realized that my very smart little boy don't quite understand what's what in the diaper area. He knows what his penis and his anus are, but he often mixes up the type of bodily function that goes with each. I must admit, I was a bit surprise, but then again no one has ever really explained it to him. So back to square one we go.
I have to start by explaining what comes out of where. He is more conscious of when he pees or poops now  and thus an immediate pull-up change has to be made, but he refuses to go in the potty.
Ok! Let the fun begins!