I would not recommend putting the food and water dishes inside the crate right away. If you do, he might drink drink drink drink drink and then have accidents inside the crate. Where do you plan on keeping his food and water? Personally, I've always fed our dogs in the kitchen, so that's where food and water is ALWAYS given. Consistency is important.
He's going to whine. You're going to put him in there at night, and then go to bed, and he's going to WHINE (well, most do, he might not). Do NOT let him out because you get sick of hearing the whining. That will only teach him that whining = I get what I want. If he gets super whiney, put a blanket over the crate. That helps a lot of dogs calm down, I had to do it with Tiger (who is the queen of all whining, lol).
He's YOUNG, so if you want to minimize accidents, you need to maximize time outside. He's going to have to go every 2 hours or so (even through the night). Until they get older, puppies can only "hold it" the number of months that they are old. So 2 months = 2 hours. Go outside, and do not come back in until he's done SOMETHING. And when he does do his business, praise him like CRAZY. Make it like it's a huge party that he did his business outside, and give him a little treat. Growing up with dogs, if you went outside and did your business, you got a treat when you came back in. If you didn't do your business, no treat. I don't really do it for Tiger like that anymore, but I did start out that way.
Sorry, those are mostly house breaking tips. Um, as far as crate training goes, make the crate an inviting place to be. Put a blanket in there that smells like you guys (Tiger used to drag out dirty laundry into a pile to sleep in when we were gone - they find comfort in our smells). Leave the crate door open all day long, and only close the door when he's going to be inside it and you want him to stay in there. If it's open all day and that's the only bed for him (which I would recommend for now), he'll learn to go lay down in his crate when he wants to rest, and it will become his home. I used to always find Tiger curled up in her crate sleeping, when she wasn't required to be in it. That is a GOOD thing.
To start out, don't use the crate for punishment. He's too little, and it will confused him. If he does something wrong (such as having an accident) just tell him no, and let it be. When he gets older, you may use the crate for punishment. He will still associate it as him own space, and it won't confuse him because he will KNOW by then that he did soemthing wrong. I liken it to sending a child to their room for disobeying you. They KNOW they should not have done it, and their punishment is to be sent to their room, away from everyone else and what is going on (aka away from the pack).