What you are doing doesn't sound anything like crate training.
Crate training is keeping the puppy in a crate small enough that it can fit comfortably. You do not want it to be big, or the puppy will find a place to go to the bathroom. When you take the puppy out of the crate you bring it right to where you want them to go to the bathroom, which is usually outside and give lots of praise when they go. Key is to go directly to the potty place when the puppy wakes up, and after the puppy has played for a little while before it falls asleep.
There is another thread going on right now on what you can expect from a young puppy:
http://sheltieforums.com/showthread.php?p=295577#post295577