I am in a real Pickle....Please anyone that can help?

My home is 11 years old this summer. Water retention in our crawl space has revealed an awful odor, and I've been told that rodents have invaded our insulation.

Our exterminator has told us that the insulation is "shot" under the house, they have invaded it and they will not continue to trap the rodents if there is water under the house.

I am sick with worry. I have two children here and 3 dogs. The terriers have killed rats in the yard, but obviously this is far beyond their scope.

I know I live in Seattle, but this house was built 11 years ago and for that I expect water retention as part of the plan. Any home warranty that I had was up 8 years ago.

Things are getting bad: My dogs are urinating on the heat intake vents to "mark their spot" and it is almost to the point of unbearable. I come home and my house smells like dog/vermin urine.

Please, if anyone knows how I can fix this problem, please post here. I have two children and this is not a healthy environment.

I want to know:
#1 What to do about the water
#2 The rodents

Please, if you have any knowledge or can pass on any information, I would really really appreciate it!

Thanks, Sue