I was amazed to see my three-year-old son, who has resisted all attempts at potty-training, spend his first week in preschool completely dry, and using the toilet with the encouragement of his teachers.
A little positive peer pressure did the trick, apparently. He's still worried about using the toilet for bowel movements, however, although I've been relieved to discover that this is completely normal.
One approach is to keep the child in pants, but suggest that if he prefers he can use a diaper/pull-up for bowel movements only. But don't let this be an excuse for him to wander around with a diaper on.
If he says he wants a diaper for a bowel movement, let him wear one but have him stay in a specific place (the bathroom of course is the best - but if he feels more comfortable it can be in his room) until after he has a bowel movement.
If you see, after 20 minutes or so, that he has not had a bowel movement, take the diaper off until he really needs it.
For great advice on the subject, try wholefamily.com.