Can't wait to see pictures!!
The sleeping thing is normal. Every puppy I got would sleep just like you described.
As for the skin, try giving her missing link and give her a bath in a special shampoo. Ask your vet for a shampoo to bath her in for her dry flaky skin. With alot of dry skin, oatmeal shampoo alone is not enough to help. I got a shampoo from my vet, it is called Hylit (sp?) and it is for dogs with dry skin. I have heard other people get it, so I know that it is not just my vet that carries it, your vet might or they might be able to tell you where to get it.
It works so great, I seen improvements the first day, and it smells like oatmeal, it has no soap, so you don't have to worry about hurting the pup's eyes and makes is so that you can give your dog a bath several times and not dry out the skin. It has fatty acids in it that really helps the skin. Anyways, it works wonders on dry flaky skin, even makes their hair smell nice and feel really soft.