I would definately set up more exercise, training and obedience for both dogs, even the puppy You may want to keep the pup in his own area for a few days. Dogs don't need as much attention as some of think they do. Puppy can be in a seperate room and Rocco can check him out at his leisure. Gradually, you can give puppy more reign of the house. Crate time for both dogs is good. There is no reason Rocca couldn't be crated for some down time while you and your wife play with the puppy.

Just for curiosity sake, you say Rocco has a tendency to be dog aggressive? Is there some reason you are keeping him intact?