I actually had to switch Billi from pads to the potty patch because for whatever reason, she sees a pad and wants to shred it- even when it's in the pad holder thingie.
It really sounds like pretty typical puppy behavior to me. Puppies just like to shred stuff. Part of it is teething, part of it is playful/innocent. I've found that giving Billi random papers & lil boxes from time to time keeps her shredding "contained," as in she doesn't go around shredding stuff.
Molly isn't trying to be destructive, she's just a growing puppy. Consider her a toddler at this point- she'll grow out of it.
__________________  [I] Dani: Happily owned by Billi-Jane & Witten 
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