I would definitely let the breeder know about the scabies - it's very possible that she wasn't aware of it and just thought that the puppy had dry skin - but she should know so that her other dogs can be checked.
It sounds like you had a pretty rough night.. I couldn't handle it - and I doubt you can handle too many nights like that. Have you thought of getting an ex-pen rather than crate training her? You could setup the ex-pen with her pee-pad in one end and her bed/blankets/toys/water/food in the other end so that when she needs to potty, she has a place to go. I did this with Oscar and it worked really well for us. I hate to say it, but you may be making things harder on yourself by giving in and letting her sleep in your bed when she whines - and it's probably not a great idea if she still needs to potty during the night - you may wake up to an unpleasant surprise. Once they get a taste of sleepin in bed with mummy, it's really hard to get them to sleep elsewhere - let alone in a crate. If you still want her to get used to her crate, you could leave the crate in her ex-pen (door open) so she can sleep in there (that way she's still getting comfortable with the crate). If you have the room for it, an ex-pen works really well. I prefer it, especially when I have to leave him home while I go out - it gives him a little more room to play and such and isn't so confining. I would feel guilty leaving him in a crate for more than an hour...
I don't know if this helps you or not... good luck though!
