Labradoodle & Goldendoodle Forum
There's a whole section in the Puppy Madness Group about Mouthing/Nipping/Biting. You may get some good tips there. Here's a link: http://www.doodlekisses.com/group/puppymadness/forum/topics/compreh...
One thing: most puppies (and adult dogs) do not like to be picked up and carried. Perhaps your kids could use a leash to take her outside rather than picking her up.
Also, it's important to remember to always speak in a calm neutral voice, and never more so than when you are giving a verbal correction. Be firm, but don;t yell. Excitement begets excitement, and yelling just riles them up more.
I'm not a big fan of man-handling or physical corrections like grabbing snouts. Again, that usually works against you by riling them up more. Say "no" or "no bite", never yell it.