There seems to be a lot of evidence that puppies should not be taken from the litter before 8 weeks because the last 1-2 weeks of that time with the litter and mother are crucial, are when the pups learn a lot about bite inhibition. So your puppy may in fact be more bitey and agressive with his mouth than the average puppy, due to not having that week of experimenting with bite pressure on his siblings.
Also he will go into a part of the yard he is not suposed to (ther is cat poop there) and I will remove him from it and say "NO!!!" and plop him down elsewhere and facing the other direction, and he makes an immediate u turn and goes right back in there.
I agree with everyone who said to just fence it off for now. Any argument you can think your way out of having with a dog, do it. If he can't get to that part of the yard, he'll get either 1) get into the habit of not going there or 2) become obsessed with getting in there and eventually, when he's larger, you'll have to come up with a new plan. But at least you'll gain some time.
Is the solution for this to let him out, play intently with him one on one for a few minutes, make sure he goes potty, and gets fed, and THEN cage him up again while she and I do our morning thing?...When she doesn't have school we have more time and can take him out and chase around. but the biting and grabbing at the clothes and nearly ripping them has to stop.
I think you have a good idea there. Just don't confine it to the house or to a few minutes. Take him outside and let him explore until he's worn down the edge of excitement of being out of the nighttime confinement. I'm not sure I'd let people play chase with the puppy right now - he doesn't need any more encouragement to chase and grab. Basically, you don't want him to establish this chase/grab/bite behavior as a habit because then that'll be a nightmare to break when he's older and it's less appropriate. It's interesting that he has it, because it's more common in herding breeds than retrievers. My collie mix will tear past me, mouth wide open, 'catching' my clothes or hand in passing - a flyby toothing. If she gets too bad about it, I knock into them with a similarly 'careless' knee as they make another go'round. Oops. I believe in physical punishment, but it has to be just, it has to be instant and it has to be unemotional (and, usually, you don't need to speak) And the second the animal responds, praise. If I had a pup who bit, I'd say No the first time. When he ignores it, walk away abruptly. When he tries it again, the bite would be unpleasant. I don't advocate hitting the dog, but it would probably be uncomfortable for him if you were to, instead of pulling your hand out of his mouth, shove it a bit further down till he backs off. No reprimand, no comment, just an unencouraging result to his behavior, one that won't hurt him and won't start WWIII. You don't want to fight with the dog, you just want to communicate and establish a mutually agreeable setup.