Dogs are puppies until around about age 2.
Up until around about age 2 dogs will have weaker bladder and bowel control, will tend to chew and get into 'trouble' putting their nose where it don't belong, etc.
Both of the dogs are of a good age to be fixed.
As for drinking the urine... Who knows. It could be a form of pica
http://en.wikipedia.org/wiki/Pica_(disorder) or a mental emotional behavior due to be locked up in a prison or lack of attention or just a puppy being bored.
Crate training should be with doors wide open, usually covering the crate with a blanket to create a dark 'den' that is welcoming to the dog is best. Denning is something dogs will do - they will find a corner or under a table or under the desk where they will lay it provides them that closed in space that makes them feel secure.
If the den turns into a prison where they are not allowed to get out, well how would you feel about your home if you were locked inside by someone else and never let out? Sooner or later you would come to hate the house.
Urinating for both male and female dogs is common for marking territory - it is also common for young dogs to get so excited as to urinate while greeting people (as example).
In worse case scenarios urinating can be the ultimate sign of submission. If a dog lays there and urinates on itself it has either been beaten or so badly mistreated that it is 'humiliating' itself to show it knows that its at the bottom of the back. Ebony (the last dog we had) had been badly beaten by the first owner, she had urinary issued through out her life - any fear, any kicking accidental or otherwise would cause her do so the ultimate symbol of submission. It was actually a terribly sad thing.
As for drinking urine - if its going to sit there as a puddle the puddle must go away.
I would of course see a vet rule out any and all possible physical issues - perhaps the vet can determine if the dog has been a victim of abuse - not by you of course, but by a previous owner or the neighborhood kids or something.
This most likely will be something she grows out of in time. Of course rubbing the nose in it will not help matter and taking to the extreme in training will have negative effects as well.
I assume that since you have two dogs you have a spacious running area especially for the 'little girl' you have (who will grow to ginormous proportions) I would suggest more running about outside as puppies. Once they hit 2 years old they will nearly suddenly take to sleeping most of the time - dog napping is marathon napping compared to cat napping.