I have a feeling alot of Daisys problem has to do with her genetics and her puppyhood. I did contact a dog trainer today, she told me that if Daisy was spoiled as a young pup (treated like a person and not a dog, and coddled when she was affraid) She will act out in fear aggression.
She may have just attacked Baby because she was affraid that Baby might attack her first. She also said that if it has anything to do with genetics then Daisy is pretty much beyond help.. She said that once genetics have written a personality pattern in the dogs brain it cant be changed..
She also said that Fear aggression is the hardest type of aggression to cure. She said that Daisy may never be the confident dog I want her to be.
I am setting up a private consult with this trainer for next week, its 50$ for her to meet Daisy and get to know her a little bit. Hopfully this trainer will be able to help us.