Saveing Molly

I need your help on a big dicsion. There is a 6 year old Sheltie named Molly. She is about the size of a pomerianian. Her owner is my friend Michelle. I went over to see her cause, well, its me, and I just love doggies!! I was looking at Molly and told Michelle how adorable she was and all that other good stuff when Michelle said "do you want her?" I thought she was kidding so I was like "Sure! I would love to." She then said "well I will have to ask my sister if you can have her, she is her dog. But she probly wont care" I said "Your kidding right?" She said "no." They obviously do not want Molly. But thats not the thing that makes me think she needs to be rescued. The thing that bothers me is... she is an outside dog because she sheds, :rolleyes: . Michelle is eager to get ride of her. She has a flee problem. She has some type of ear problem cause she is always shaking her head and will bring her foot up to scratch it but then she yelps and pulls her foot away. I feel so awfull, Shelties aren't good outside dogs, you should see the way she followed Michelle around, Molly obviosly loves Michelle but I don't think they feeling is mutual. I'm worried about her flee and ear problem. She also is covered in mud and stuff. And the way I see it if they don't want a dog and are just going to tie her up outside and only see her to feed her, then why get one?

So My question is..
Do I leave Molly where she is? Or do I divide the house and bring her home? My parents are legally seprated now and I am going to be moveing in to a nice house with my Father next friday. The way the house is set up we could baby gate the hallway, 3 bedrooms and the livingroom off and allow Molly to run around that half of the house and Chewy could have the Kitchen and the other living room. They both would have a alot of room to run around and would be loved alot. We also have a large back yard.

Any Ideas?

Ash