My lab does that quite often when she is sleeping, I just always thought she was having a bad dream.
You mentioned that your pup does that when awake also, so I don't have any idea, sorry. Maybe someone else will come along later with a suggestion for you.
karen, mom to:
ace-gsd (bi-color) 6/14/2010
mandy-yellow lab 1/31/2009
baby-terrier mix 11/25/2000