It definately sounds like you're doing the right stuff! My Tobi went through bouts of nipping/biting hysteria..but he's calmed down a bit. What I usually do is completely leave the room so that he can NOT see me at all. I'll leave him alone for 10 minutes and come back...if he acts up again, I'm gone for another 10 minutes...and that usually does the trick. I was also told never to use my hands as play toys...so don't wave them around their faces when you know they're overly excited.
Good luck to you and your fur baby!
