Don't put him in the crate as punishment. If you use the crate for sleeping, or to keep him safely contained at other times, he might start to view it as a bad place and may want to resist going there.
Actually, I wouldn't recommend punishment at all. He's still a baby, so is doing baby things and doesn't really know better at this point. Make sure you have lots of things he can chew handy. When he bites the sock, just say "no" and give him the other item as a replacement to chew. If he switches to biting the chew toy instead, lots of excitement and praise. Also, try to get your kids to react as little as possible. If they are making noise,or jumping when he does this, it may seem to him like they are "playing" the game.
You might want to look into puppy classes somewhere. Those can be tricky breeds, so it might be helpful to get things off on the right foot. I recommend Sit Happens if you're in the north (have gone there myself) or dogma in the south (haven't gone there, but has been recommended by others I trust).
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