not sure if this´ll work.. but as you said pickng him up calms him a bit... it may be as he feels in a not so dominant position up there...

you can try roll him over (belly rubs like) and hold him so it´s him in a submissive position...

one other thing is yo could bare your teeth at him to show him enough is enough (like a mom dog would). it´s ok to play but don´t cross the line type thing...

he sure is the cutest beagle/boston mix!!... I love Hank!