You are describing a hemotoma. It's not incredibly rare (a few people on the board have had to deal with it), shows up within a matter of days, and unfortunately you need to take your dog to the vet as soon as possible. Basically the puffiness in the ear is it filling with blood and fluid. It will have to be lanced and drained. Don't wait to go to the vet, hemotomas can be very painful.
***Edited By: Minniyar on 2/28/2008 7:00:10 AM*** Reason: add
Never trust a tall dwarf... he's lying about something.