We stayed at Yellow Dog Cottage in the summer of 2010. The location was amazing. The house is set on a sheltered, pristine cove with a private dock and gorgeous view. We rented kayaks and spent many hours paddling the beautiful tidal cove. Waldoboro is a very small town and is some ways away from the house, so you have to plan supply trips into town. It's a rural location, which suited us but might not be for everyone. The house was simple but comfortable, though the upstairs room was a little strange with virtually no light and no electrical outlets.
The biggest problem we had was with the water. We were told the house slept 5, and it was myself and my four children. We were very cautious with the water as we were told there was an elaborate water system in place due to the proximity to the cove and that as long as we "didn't use more water than is reasonable", it should be fine. Basically, we took two short showers in the morning and two short showers at night, with my youngest daughter fitting one in when she could. We ran the dishwasher once a day and that was about it, and we had MAJOR water problems. The water shut off entirely several times, requiring the local handyman to come in and reset everything followed by a long wait for the tanks to refill. During this time, we couldn't even flush the toilets.
Katherine did offer me a partial refund when I asked, but I was disappointed when I inquired about renting the cottage again this year to discover that the water situation has not been fixed. Furthermore, Katherine seemed to blame the problems on our "excessive" use of water, which was upsetting giving how cautiously we approached the whole situation while there. If the water can't be fixed because of the proximity to the cove, the listing should clearly state that this cottage sleeps less than 5, because in my opinion, it's perfectly reasonable to expect that each person get one brief shower a day.
The only other problem we had was the authorized use of the Yellow Dog dock by an early morning lobsterman. Said lobsterman was lovely, but the fish guts and traps strewn across the dock along with the excessive noise of his boat motor at 5am was not. Wish we'd known about this in advance.
All this said, if the noise doesn't bother you and you have only a couple of people (or don't plan on showering everyday) in residence, Yellow Dog offers a simple place to stay in a stunning location.