OK: first, she shouldn't be running around loose amongst children. Interactions all need to be controlled: kids sitting down on the floor and you supervising any handling of her. This is extremely important. I have lots of info in the library on keeping interactions between kids and puppies/dogs SAFE for kids and SAFE for puppies. Having the puppy run round while kids also run around is dangerous to both.
Please see:
http://board.cavaliertalk.com/showthread.php?t=9729
This gives lots of good links. I cannot emphasise enough how important the parent's supervisory role is. Children are the most common recipients of dog bites, most often by a dog they know, most often *to the face*. On the flip side, many dogs, especially small breeds, end up with lifelong fear aggression towards children -- growling and snapping and worse, even biting -- because kids on their own are not good or safe judges of gentle and smart interactions with dogs. A lot of my rescues come into rescue because they have snapped at a child and thus I have to find them an adult home. I then test these dogs and it is pretty obvious they can only have snapped because some child was allowed to interact with the dog in a way that aggravated the dog. But it is very sad when families have to rehome when this all could and should have been prevented by parental supervision of any children under 10 when with a dog, especially a puppy.
Also: just because the kids are there doesn't mean housetraining ceases.
If the kids are sitting on the floor for all interactions and interactions are controlled by the parent, as they always should be, then it is simple to observe that she needs to go and to take her out, or to take her from the children when it is her alloted time to need to go out.
Ps questions are welcome! But having a good book makes things a lot easier and can serve as a point of reference. I read my copy of that book over and over while housetraining Jaspar.
There are also many previous threads on this topic too -- using the search function can give you plenty of helpful info from the past.