You need to see a vet it sounds like the pup is sick with something.
While they do sleep a lot at this age they also play hard.
The breeder gave you terrible information other than the change in attitude when outside about housebreaking. Never stick your dog's nose in its elimination.
This site covers a lot of new puppy info
http://www.k9events.com/pups2.html
and this goes over basics of housebreaking
http://www.dogbreedinfo.com/housebreaking.htm
As your puppy is too young to really hold it yet the best you can do is put them in a safe area that won't get ruined if they urinate on it.
Make sure the bathroom is puppy proofed and that might work for a safe place or use baby gates to block of a kitchen or pantry.
I would feed a pup this age 3-4 times a day.
For a good book on puppy raising check out the book Super Puppy at
www.superpuppy.com
Hope this helps you!
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