When Britney was a puppy, I kept her in a playpen. It was really cute! The playpen's bottom was made with a water-resistant material, so I never had a problem with it getting dirty. I kept her bed on one side and the pad on the other.

She stayed it whenever I wasn't home until she was probably 9 months or so. After that she was able to jump out.

I have the xpen for Izzie set up in my kitchen....she is in it during the day while I'm at work and at night for sleeping....I have one area set up with her wizdog(potty pad) and then her food/ water toys and bed are on the other side. I do take the bed out during the day and she just has her blankie so that gives her more room to play with her toys. Then evening time from about 5:00-10:00 is free play time outside (with supervision) and downstairs....she is so used to this routine now that at night all I have to do is just point to her bed and say "Nitey Night" and she goes right in her xpen and into her bed for slumber time.:dogzzz:

First, congratultions to your friend on her new puppy! Which one of Willow's puppies is she getting? I saw them all in person and got my little Lily from her. Those puppies are so darn cute!

Anyway, I think the playpen is better so that it gives the puppy more room to move around. Another good idea is an expen or to gate a room for them. In the playpen or expen, they should have food and water, a blanket or 2, a potty pad and some toys and chewies. The puppy kong is good to keep them occupied for longer periods of time, and you can put their favorite treats inside. Another toy that keeps my little guy occupied is Hide-A-Squirrel. I think they also have a Hide-A-Squirrel Jr. that is smaller and better for the littler ones.

Edited to add: I just bought a Graco doll playpen for Jake, but he can jump in and out of it. So, I'm saving it for my new pup. I think it's perfect for a little one, but I wouldn't keep them in it all day. There's not enough room for food, water and a pee pad. But, they are great for keeping them confined for shorter periods of time if you need to.

Wemple2 sent me the following picture of a dog that was for sale that she thought might be zeke. I am posting this in case it is and someone can try and ID it

oops worng thread sorry

You can line the bottom of the playpen with a plastic tablecloth, then a blanket on top. That would keep the bottom from getting ruined. The best ones are probably the ones that are plastic or vinyl on one side with a felt backing.

When I had Lily, I learned something that worked really well for her. I kept her in a travel crate because I had to keep her warm. My vet had told me that Hydrocephalus pups usually don't care whether or not they lay in their own urine. I found that not to be the case with Lily. She would look for a corner of the crate that wasn't covered and go there if I didn't pay attention. So, I had a fleece lining in the bottom of the crate, and then I put baby receiving blankets in there and made sure the entire bottom of the crate was covered with the blankets, especially the corners. That way, she would cry to let me know she had to potty. She never once had an accident in her crate, which I found amazing since she was so young and she was sick. So, I'm thinking if the entire bottom of a playpen was covered with plastic and then a blanket on top of that, with a pee pad or two on one side, the puppy wouldn't go in the playpen, but only on the pee pads.

I use Both!
 

I use both a outdoor Pen and 2 out of my 3 are "Crated" for periods of time and I have also "Trained" all 3 to have free run of the House for extended periods of time. From what I understand a Crate is more Private for them and is supposed to give them a sense of Security, as well as promote rest and sleep while you are away or even when they just want to get away from me.
When they are in the Pen, I never leave them un-supervised since it is outside in an un-fenced yard......too dangerous!
I have used it indoors with Pads, before they were House Trained. I prefer to use both depending on the time of day and purpose or how long I will be gone? The Pen does not give them any Privacy and It's uncomfortable for me to bend over to take them in and out of it. As far as the Crate, they go in and out when they please.

Flannel back table cloths from the dollar store works well also