I have just gone through the same as you. We had a litter that had one blue pup. I myself didn't know what was going on. I contacted AKC and they requested a photo. She told me that the pup was a Chocolate. Then, the following litter we had had two girls the same way. I came on here found out some information and now know that I have blue pups. My Dam on the second litter is a blue, but never showed any signs till the end of her pregnancy, she lost her hair in the saddle area. She is three and had a beautiful coat. She has never had any health problems and we just thought that she was a silvery/blue and tan. She is fixed now and will not be producing any more litters, the sire to the other litter was her brother and he is a gene carrier, he too is fixed now. From our experience, please don't consider euthanzing the little one. Our girl even with no hair is not in pain and very healthy. Our vet recommended limited sun time to keep her from getting burned, and to use moisturizing shampoo and even vitamin E on her back. Here are some pictures of our blue babies.
And a couple of links that I found helpful in understanding the blue born
IGCA : CDA http://www.dobequest.org/genotype.php colour dilution alopecia