I have run into this before with children who started young. I had an 8 month old start and was great for the most part. Transition went pretty well. Than a few months down the road, the screaming happened. Not to the extent of this but I think it was because he started so young, that he didn't play shy or anything (didn't really know what was going on so to speak) and than as he got older it's like it finally clicked....hey I'm at daycare and mom doesn't come pick me up right away!
I normally go about my day and try to struggle our way through the activities and such. However, if the crying/screaming becomes too out of control than the child needs to be separated. Just like an adult, children get overwhelmed and it's not fair to them (or us and the other children) to keep them in a situation that is obviously stressful for them. I use the playpen method and IME, it works great. They are allowed out when they are ready and calmed down. If they are doing it because the situation was stressful for them, it allows them time to calm down and refocus. If they were screaming/crying because of anger, they learn quickly that a time out in playpen isn't as much fun as whatever the activity we are doing is.
If it goes on like this for longer than a month with no sign of improvement, I would probably be tempted to term. I have never had to do this for that reason though as the playpen method usually works. I would let the parents know the month probation is starting now.
I had one child scream/cry the whole day he was here for 2 weeks and I did the playpen method as well as continuing on throughout the activities. Exactly 2 weeks later, he was well adjusted and became one of my easiest children!! Good luck!!