You might try a round circle type gate. We have one that is a strong plastic and we used it with our puppy. You can make it into whatever shape you want- circle, rectangle. This way you can put newspaper down or have it in the yard where the puppy can go potty and still have a sleeping area as well.
PetsMart and Petco should have something like this. I think I got it at one of thee stores. Also Foster and Smith has a great catalog where you can order something like this also.
I would use a crate when your puppy is a little older. Use the other "pen" until the puppy starts jumping and getting out of it.
Hope this helps! C.