M.S.
Your hubby is wrong on the time out! This is not a time for punishment, unless you want bowel/potty issues when he's like 12 or something. (all this said, I have a hubby that would have said the same as yours - so I understand, but there are plenty of articles/books, etc.. out there for you to show your hubby that punisment is old school when it comes to toilet training/learning).
It is so normal for your son to not want to poop on the toilet. First off, encourage him to sit, not stand when he pees. Often, a child will poop at the same time. At least, if they need to go, they are more likely to do so since they are sitting there already. Don't force him. Holding his poop is worse than going in a pull up or diaper. Accidents in his underwear? - No big deal! Just say, "oh, let's try to make it to the toilet next time, OK?" With my son (he was the same age and more than ready) I was by his side for the 3 days or so that it took. That way I could read his body actions and encourage him to sit on the toilet. He was "trained" quickly and it was actually fun - I credit that to the fact that he was ready. I also read The No Cry Potty Solution by Elizabeth Pantley to ensure that I was ready too! I highly recommend it for both you and your husband, it's a short, informative read.
My husband had nothing to do with potty training with either kid. Are you asking because you are potty training a boy? If so, I wouldn't sweat it - they don't have to watch Daddy pee to get it. Sitting is actually better since it might encourage a poop. Standing is fine of course, but I say teach/guide him in the way he seems most comfortable.
Also, potting training and staying dry at night aren't the same at this age. Your son is potty trained when he is wearing underwear during the day and peeing and pooping in the toilet -during the day. Pull ups/training pants are normal for a child to wear @ night and you don't need to be concerned until age 7 or so. Some kids stay dry early, most do not.
Hope this helps - I didn't mean to come off so harsh at the beginning - I'm a tad passionate about this topic as my poor daughter had some serious bowel issues until age 5 - I can't imagine punishing her during that time and it breaks my heart to know that some people do.
M.