We are going to sign him up for puppy obiedience classes next week.
Very good idea

)
Labs tend to be mouthy as youngsters. Coonhounds follow their noses. So, you have a mouthy, distractable puppy! But, remember, he is just that - a puppy. Their attention spans are extremely short, and they need repetition, and to begin learning in a non-distracting environment, much like human children.
Both these breeds are usually food motivated, so that might help, especially if you choose a class that uses operant conditioning techniques. When you reward, feed the dog flat-handed, so you won't get those sharp pup teeth carving up your hand. One hint - you can train "easy" by holding a piece of really good food in your fist (I use cheese, or roast beef). The dog will probably put his mouth all over your hand - he may even paw you. Ignore it and be quiet. Finally, he may withdraw his muzzle, puzzled that your hand hasn't opened. At that moment, you can say "easy" and open your fist. He gets the food for backing away, not for mouthiness.
Also, the best way to keep a pup from being mouthy is to have him get enough exercise. Even if you are walking a dog five miles per day, it isn't as good as if he gets really tired from a solid game of fetch, or playing with other puppies (this is really the best). Labs were bred to retrieve ducks out of cold water all day, and Coonhounds can trail game for miles and miles and miles at a brisk trot.
The fact that your dog doesn't want to be near you if he has a toy means he is toy motivated! Clap your hands and yell yippeee!!!! You have something, as well as food, that you can use to motivate him. Hopefully, your trainer will show you how.
Small puppies often are afraid to go away from home in the neighborhood. Don't be frustrated. Try enticing him with a little food, don't coddle him when he acts afraid, and don't force. You can try picking him up and walking a way, then put him down and let him walk toward home. Gradually, he will get used to the sights and sounds.
This pup is not being mean - he sounds like a normal puppy. Many people aren't prepared for how mouthy they can be. But, don't answer his mouthiness with anger or physical punishment - that's the best way to insure he will get mean later.
I think you are just expecting too much of such a young dog, and will be pleasantly surprised if you get hooked up with a good trainer who understands hounds.
On this forum, you may want to also PM Jen (owns Roscoe, the Blue Tick Hound). Her dog just got a CGC. My hound has one, too. They really are smart, but they can be stubborn. Once trained, they are very cool dogs to have.
BTW, don't scold him for "mistakes". The secret to good housetraining is *supervision*. He shouldn't have freedom in the house yet. If he's out of his crate, he should be tethered to you with a long leash. Then, if you see him looking like he has to go, you can say "uh-uh" "Outside?" as you lead him gently outdoors. Say the same word each time. ("Go potty" or "Hurry Up", etc.) He will eventually learn. Pups can only hold it one hour longer than their age in months, and they will usually also have to go after eating, drinking, playing or waking from a nap.
Food and toy motivated dogs do well with operant conditioning. These sites often list trainers who use this:
[link
http://www.apdt.com]www.apdt.com[/link]
[link
http://www.clickertraining.com]www.clickertraining.com[/link]
BTW, I'm a trainer, and I often think "what the heck have I gotten myself into this time?" with a new pup or dog. But, once the training is in place, I usually think "no one else on the planet has a dog this great". Like the others said, the hard work you invest now should pay off. Keep at it

) Good book - "Parenting Your Dog" by Trish King.