sleeping habits

Question
I have a 3 month old yorkie and I have had him for about a month.  I was told when I first got him to let him sleep close to me because he was going through separation anxiety.  He was kept in a cage with his brother and sister at the pet shop.  Now I am trying to get him to sleep in the cage at night and he just whines and barks nonstop. The longest he has kept quiet in the cage at night is about 2 hours and then the whining starts in the middle of the night. I know that I should just let him bark until he calms down but I live at home with other people and don't want him to wake everyone so I just end up taking him out the cage.  Any suggestions on how to get him not to associate loneliness with the cage??

Answer
I have never had much luck with the old clock or radio tricks.  What I do is lay down by the crate like I was going to sleep there.  Usually a puppy may fuss a little, but then
settle down and go to sleep.  Once it is asleep, you can get up and go to bed.  If you are not keeping the crate by your bed, many people think that helps.  

You could also try leaving him a peanut butter filled Kong.  Make it a small one.  A big one would be too much if he could reach it.  

It may be a leadership thing too.  
The key to most behavior problems is approaching things using the dog's natural instincts.  Dogs see all the people and dogs in the household as a pack with each having their own rank in the pack and a top dog.  Life is much easier if the 2 legged pack members outrank the 4 legged ones.  You can learn to play the role of top dog by reading some books or going to a good obedience class. A good obedience class or book is about you being top dog, not about rewarding standard commands with a treat. Start at http://www.dogsbestfriend.com/  Try these techniques too:

''Elevation for small puppies:  Sit on the floor and gently put your hands around your pup's middle, below his front legs, and lift him up.  He is facing you.  Hold him for 15 seconds.  Repeat until he no longer struggles.  If he is past 10-12 weeks, lift his front feet off the ground, but don't pick him up.  

Cradling for small puppies:  Hold your puppy gently on his back, as you would cradle a small baby.  If he struggles, hold him firmly until he quiets for 10-15 seconds.  With larger pups, you can do this as your sit on the floor, with your pup between your legs.

Quiet lying down:  Place your pup on the floor on his side, with all 4 legs pointing away from you.  Use your hands on his neck/shoulder area and middle, to hold him in this position.  When he is quiet, praise him.  Lengthen the time that you keep him quietly in this position.  When he accepts this position well, handle his paws and muzzle, while keeping him quiet.''

The quotes mean this isn't my original work.  It is copied from my Puppy Raising Manual.  I have long used these or minor variations of them, and they are very effective.  You may want to give him a belly rub while he is on his back too.  Helps bonding.  There is a big difference between him rolling over and demanding a belly rub, and you choosing a time to roll him over and rub his belly.  The latter cements your place as pack leader.