Puppy biting chasing

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Phineas- (Finn)

Barked: Mon Aug 12, '13 5:46am PST 
I have been having a really hard time with my almost 4 month old aussie puppy. He won't stop biting/ chasing, especially when he sees a moving target. I understand that this is exactly what the breed is pretty much bred to do, but it has resulted in a number of ripped clothing and bloody legs (from scratches and bites). Whenever he does this I have been pulling back on the leash and scolding, but he seems to take that with a grain of salt. I am hoping people on here could offer some advice on how to get this behavior to stop. Thanks!
River Dancer

Barked: Sat Aug 17, '13 4:23pm PST 
When River would nip at my pants whatever we were doing stopped. If we were playing all play stopped. If we were outside he went into the kitchen with the gate up. He quickly learned nipping got him a time out and all fun stopped.